Hope, Change, and the Inauguration

Tomorrow marks an historic point in our nation’s history. Regardless of your politics, most will, in one way or another acknowledge and take part (at least in some, small way) this watershed event.

Whether you’re a news junkie, or just occasionally glance at the coverage of this event, it’s hard to miss the scope and scale of what’s happening in Washington, D.C. President Barack Obama’s inauguration tomorrow will be the most elaborate, secure, and expensive in history.

The theme of the inauguration is “A New Birth of Freedom”. We know that President Obama’s theme for his campaign and fledgling administration is “Hope and Change”. What does it take to deliver the opening of this new administration, this bridge to a place of hope and change? A massive undertaking, a show of powerful organization and funding to rival all inaugurations before.

According to news reports, “Obama will wear bullet-resistant clothing, speak behind a protective glass shield and ride in the parade in the armored Cadillac limousine, with doors and windows so thick that he probably would survive a bomb blast.” There will be 58 different agencies working on the project and the price tag to the Presidential Inaugural Committee alone will be around $45 million.

In order to create this event and set the stage for the new president to pass his legacy on to the country, it was required that his team plan not just for what’s probable, but for what’s possible.

The same is true for you as you contemplate what’s necessary to assure a smooth transition for those you love in the event you become incapacitated and when you, ultimately, pass away. It is critical that you leave as few things as possible to chance. A properly created estate plan will help you to create this kind of security for those you love.

At a bare minimum, a good basic estate plan will include a will and/or trust, a durable power of attorney, and an advance directive for health care. A carefully designed plan, set up for you by a qualified estate planning attorney, will go even further to anticipate (and smooth over) as many of life’s bumps in the road as possible.

So, whether you take time out of your day tomorrow to watch the inauguration live, or you catch the highlights on tomorrow’s evening news – let this ceremonial transition of power remind you of the responsibility you have to assure just such a seamless transition for those you love and may, someday, leave behind.

Protect Yourself and Your Family from the Costs of Long Term Care

The odds that you will end up in a nursing home before you pass away are high. Some studies show the probability of adults over the age of 65 needing a Long Term Care stay at some point during their lives nearing 50%.  Most folks, including many of the clients we meet with in our estate planning practice have no plan to minimize the burden on their estates and their families.  The truth is that people often avoid facing the reality of the Long Term Care threat, avoid taking action while they still can and avoid discussing their Long Term Care plan with their families.

The odds of falling prey to Long Term Care are staggering and the cost can be even more so.  A year in a Georgia Nursing Home averages more than $40,000.00 and promises to keep rising.  Many Americans hold the mistaken belief that Medicare and Medicare Supplemental Insurance will cover Long Term Care.  At best, Medicare covers only part or all of the first 100 days of care.  Most Long Term Care costs are paid out of your own pocket.  Once your assets have been spent down to the applicable poverty level ($2,000) you may qualify for Medicaid, a government Long Term Care program. Medicaid is a welfare program.

Against this backdrop, Long Term Care Insurance (LTCI) has become one of the fastest growing insurance products in the country. Fortunately LTCI can be designed to fit almost any budget. Most LTCI policies share some common features you should know and should be looking for:

1.  Benefit Amount: How much will the policy pay?

2.  Benefit Triggers:  When will the policy pay benefits?

3.  Inflation Protection:  Will the purchasing power increase?

4.  Level of Care: Are Custodial and Intermediate Care covered, along with Skilled Nursing Care? Is Home Health Care covered?

As with any form of insurance, the policy is only as good as the ability of the insurance company to pay your claim.  Check out the financial strength and reputation of the insurance company and seek competent legal counsel to interpret the contractual provisions of any LTCI policy before you sign on the dotted line.  As always, when considering these types of planning strategies, talking with a competent estate planning attorney before you sign any contract is a must.