Rainey Attorneys Law

This May, Rainey & Rainey, Attorneys at Law, LP is pleased to recognize Older Americans Month, a time to acknowledge the contributions of past and current elders to the United States.

President Joe Biden has released A Proclamation on Older Americans Month, 2021, acknowledging the hardships the COVID-19 pandemic has imposed on our nation’s older adults and thanking them for their support. Biden also mentions his administration’s focus on improving services for older adults, including Medicare, Social Security, long-term care options, and the price of prescription drugs.

As a nation, Biden says, we must “honor these citizens and their continued contributions,” and “commit to learning from them [and] support[ing] their futures.”

The History Of National Older Americans Month

In 1963, President John F. Kennedy designated May as “Senior Citizens Month,” the prelude to Older Americans Month. During this time, only 17 million Americans reached their 65^th birthday, and many elders lived in poverty with few programs to meet their needs.

Older Americans Month is a time to celebrate the way elders add value to our country, recognize those who served to defend our country, and pay tribute to older Americans in our communities.

Individuals and organizations across the country recognize Older Americans Month with celebratory ceremonies, events, fairs, and other activities. Each year, the U.S. Department of Health and Human Services, Administration for Community Living also announces a theme for Older Americans Month.

The theme for 2021 is “Communities of Strength,” acknowledging that connecting with others is one of the most important ways we can nurture ourselves, reinforce our strength, and continue to thrive.

National Elder Law Month

May is also National Elder Law Month, a perfect time for older Americans to learn about the laws that affect them and create or update important legal documents. In May, attorneys across the United States educate seniors about their legal options, and some provide pro bono services.

How Rainey & Rainey Is Celebrating

Each year, Rainey & Rainey, Attorneys at Law, LP celebrates Older Americans Month and National Elder Law Month by helping seniors in our community with elder law and estate planning. From Medicaid to guardianship to wills, trusts, and power of attorney, our firm is here to help you plan for the best possible future.

Although we offer these services all year long, you can celebrate Older Americans Month and Elder Law Month by scheduling an appointment in May.

Call us at (254) 457-5083 or contact us online today to discuss your future with board-certified legal advocates.

Prepaying for your funeral is one way to ease the burden on your family following your death and make sure your wishes are carried out. But pre-paid funeral plans come with risks, so you need to exercise care when purchasing a plan.

Funerals are expensive and can take a lot of effort to plan. To help relieve your family of some of this expense and effort, you can pay for your funeral in advance with a pre-paid funeral plan purchased through a funeral home. In addition to making things easier for your family during a difficult time, pre-paid funeral plans can also be a good way to spend down money in order to qualify for Medicaid.

However, consumers lose money every year when funeral homes go out of business before the need for the funeral arises. If the funeral home mismanages your funds, there may be no way to recover them. In addition, customers are not always entitled to refunds if they change their minds, and some funeral homes sell policies that require additional payments or that can’t be transferred if the customer moves.

If you decide to go ahead with a pre-paid funeral plan, the following are things to consider:

• Shop around. Prices among funeral homes can vary greatly, so it is a good idea to check with a few different ones before settling on the one you want. The Federal Trade Commission’s Funeral Rule requires all funeral homes to supply customers with a general price list that details prices for all possible goods or services. The rule also stipulates what kinds of misrepresentations are prohibited and explains what items consumers cannot be required to purchase, among other things.
• Make sure you have a reputable funeral home. There have been cases of unscrupulous funeral providers taking advantage of customers, so make sure you choose a funeral home with a solid reputation.
• Read the contract carefully. Before signing, it is important to know what you are agreeing to. Can you cancel the plan and get a refund? Is the plan transferrable if you move to another area? Are you paying just for merchandise or for funeral services as well? If prices for funeral merchandise and services rise, will your estate be responsible for paying additional costs?
• Find out where your money goes. The pre-paid plan should provide information on what the funeral home will do with the money you pay them. Some states have protections in place to make sure the money is safeguarded, but other states offer no protections. Is the money put into a trust account? What happens to the interest income? Is there a plan if the funeral home goes out of business? What happens to any money left over?
• Make sure the plan won’t affect Medicaid benefits. If you are buying the policy as part of Medicaid planning, you must purchase an irrevocable plan, which means you can’t cancel or change it once it is bought.

Once you’ve purchased a plan, be sure to tell your family about the plan you’ve made and let them know where the documents are filed. If your family isn’t aware that you’ve obtained a plan, then the plan is useless.

Talking about estate planning is a difficult, emotional topic but it’s essential for every family.

Unless you’re certain your parents have an up-to-date will and a wider plan for what should happen in the event of their passing, you shouldn’t assume everything will be taken care of.

According to a 2017 survey, less than half of Americans have a will. If your mother or father dies intestate – meaning without a will – such a situation could lead to added emotional strain and stress. And it could have financial implications for all their children and/or other family members.

The following eight tips can help you discuss the hard topics thoroughly and respectfully and prepare you for the road ahead.

1. Plan What You Can

Discussing estate planning and all it entails is not something that should happen without any planning. Make a list of topics and questions, then let your parents know what you want to chat about with them.

If possible, set a time and date and choose a private venue that everyone will feel comfortable in. Be aware that you may need to schedule a few conversations as there could be too much to cover in one sitting. Remember to use language that’s respectful and supportive, and to take a breather if emotions run high or the stress becomes overwhelming.

2. Identify Key People

There are several key people you may need to contact for estate planning purposes. Ask your parents for the names and contact details of their:

• Doctors
• Attorney
• Financial planner and/or accountant
• Insurance brokers
• Minister of religion
• Closest friends

3. Address the Topic of a Will

Determine whether there is an existing will in place and whether the document is up to date. If a will was created more than five years ago, check to see if they’d consider reviewing it to ensure it’s a true reflection of their wishes. Establish where they keep the document and confirm who they’ve appointed as the executor/s. The same goes for any trust that may have been created.

4. Talk About Power of Attorney

Find out whether your parents have appointed someone to manage their financial and other affairs if they become incapacitated. If they haven’t given someone power of attorney, suggest they consider doing so.

5. Discuss End-of-Life Wishes

Even though the subject may be uncomfortable to talk about, you should discuss your parents’ end-of-life wishes with them. Their estate plan will be incomplete without these directives, so it’s important to include them. The form those directives take depend on the state in which you live, and they may
include:

• The appointment of a health care proxy who can make medical decisions for your parents if they become incapable of making those decisions themselves. You can obtain the relevant forms from an elder law attorney or from a hospital or nursing home
• A medical or advance directive that explains what sort of care they would like and whether life support should be used to keep them alive or not. These directives can be included in the document that appoints the health care proxy. The directive must refer to the Health Insurance Portability and Accountability Act (HIPAA) when naming the proxy
• A living will contains instructions regarding the withdrawal or termination of life support under specific conditions, such as your parents becoming terminally ill, becoming comatose, or entering a vegetative state
• Physician Orders for Life-Sustaining Treatment (POLST), which provides more explicit directives regarding the type of treatment your parents would or wouldn’t want

6. Ask About Insurance Policies

• Health insurance – Medicare or private
• Life insurance
• Home insurance
• Long-term care insurance
• Disability insurance

In some cases, there may be seniors funeral insurance or other policies intended to cover funeral or burial payments. You’ll need to know about these too and have all their details.

If you haven’t already done so, take note of the names and contact details of the insurance brokers. Check where the policy documents are kept, and if possible, make certified copies of them.

7. Request Access to Tax Returns

It can be helpful to know where tax return paperwork is stored. While these documents may not be necessary after death, they could be required if the estate becomes complicated. Confirm where you can find these documents and that they’re all up to date.

8. Discuss All Other Practicalities

In addition to subjects such as power of attorney and insurance, there are several other practicalities you should include in your conversations.

• Make a list of their accounts – financial accounts such as bank and mutual fund, credit accounts, and store accounts
• Check if they are registered organ donors or whether they would consider
  donating their organs
• Talk about the memorial service they want and whether they want to be buried, cremated, or some other option.

Conclusion

Estate planning conversations are tough no matter how you tackle them. Try your best to be patient with your parents and transparent with other family members about what you’re doing. If you have siblings, invite them to be part of the conversation.

Accept that these talks can take time and avoid placing pressure on those involved to get it all done in a few hours. The smaller details are critical and should not be rushed. Lastly, always consult an attorney if you’re unsure about the legal aspects or implications of any of the points mentioned above.

Ellen Klein is a freelance writer with a background in personal finance and estate planning. She can be reached at ellen@eklein.me