Our Veterans

Along with about 86,000,000 of my closest friends (according to Neilsen numbers), I got out my chips & salsa, my wings & hot sauce, and my Prilosec & Rolaids last night. I sat down to watch the spectacular production that is the NFL’s championship football game.

In addition to the necessary players from each team and referee, there was a seeming cast of thousands (ok, maybe dozens) at center field for the coin toss. Tossing that coin, as I’m sure many of you saw, was the current Commander, U.S. Central Command, General David Petraeus. His participation and the always-breathtaking pass by the Blue Angels got me thinking about our men and women in harm’s way.

Wait! Don’t click away from this post yet! This is not a dissertation on the merits of the War on Terror. It is not a diatribe about our military action in Iraq or Afghanistan. Regardless of your politics, your thoughts on use of military force, or your politics – most of us can agree that we should do our best to stand by those serving in our armed forces. Part of the way we do that in our country is by providing certain benefits and services to our veterans through the Veteran’s Administration or VA.

Aid and Attendance is a part of those benefits of which many people have never heard. The VA Aid and Attendance program is for veterans and surviving spouses. It is in place to assure certain funding for these veterans and their spouses to get the assistance they need in basic, daily living activities (eating, dressing, bathing, etc.). Depending on circumstances, there may also be funds available to help these veterans and spouses who are in nursing care or assisted living facilities.

Not unlike Medicaid (another government benefits program), VA Aid and Attendance has its own set of regulations and hoops which much be jumped through to qualify. There are choices to be made and disclosures (regarding assets) which must occur properly. Also, like Medicaid, VA Aid and Attendance has certain maximum assets a person may have and still qualify.

If you or someone you love has a need for such benefits and is a veteran (or spouse of a veteran) it makes sense to speak with a professional who has knowledge in the area. Even if current asset levels are too high, there are often things an estate planning attorney can do to position those assets correctly and help the veteran and/or spouse to qualify for the benefits to which he or she is entitled.

From all of us at Smith Barid, LLC, we offer our sincere thanks to those who have served, and those who are serving, our country in our armed forces.

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.