Vacek & Thain, PLLC

Special Plans for Special Needs Children

Planning for family members with special needs can be overwhelming, particularly when so many decisions may have lifelong consequences. Beyond figuring out the intricacies of government programs, parents fret over guardianships, how governmental services may erode and what legal documents they need.

Children are raised to eventually be able to support themselves, but this isn’t always possible for kids with special needs and disabilities.

Consequently, the parents of a child with special needs must have a plan to care for their child when the parents pass away.

It is not an easy task.

Recently, the New York Times published an article on this very subject titled "Tips for the Future Care of Disabled Family Members."

The following are key points from the article:

• Get Started - The first step is to just get started. You will want to make plans to provide sufficient resources and to ensure that all of your funds will not be used for your own retirement or later-in-life care.
• Use New Tools - 529A savings plans may soon be available. They will allow you to save up to $100,000 for your child without jeopardizing your child's eligibility for government benefits.
• Trusts - Setting up a special needs trust with the advice of an experienced estate planning attorney is extremely helpful.
• Guardians - Plan carefully to appoint your child's guardian. It may be better to have two guardians, one to handle the finances and another to handle other matters.

Reference: New York Times (March 27, 2015) "Tips for the Future Care of Disabled Family Members."

Please visit our website for additional information on how to plan for special needs.

Alzheimer's Is a Potential Future Problem - Are You Ready for It?

Waiting to create an estate plan could result in significant out-of-pocket costs at the end of life. Or even worse, it could result in a person with Alzheimer’s disease being subject to the will of the courts. With the number of individuals suffering from Alzheimer’s skyrocketing, there is no time to wait to get your affairs in order.

What will you do if you develop Alzheimer's? This unfortunate disease gets to the core of who we think we are. People with the disease often forget their friends and family members.

Anyone who has ever known someone with Alzheimer's knows how frustrating this disease can be for the patients and their loved ones. A recent article in UT San Diego, titled "Legal, financial planning for Alzheimer's patients," details some steps people can take to be prepared should they or their loved ones ever get the disease.

The key thing to know is that you need to prepare ahead of time.

People with dementia normally lack the capacity to sign legal documents. That means you cannot make plans after you get Alzheimer's. If you wait, then a court might be required to make plans for you.

You should prepare documents which will give authority to someone who will make both medical decisions and financial decisions for you if you cannot.  A medical power of attorney names an agent to make medical decisions on your behalf if you cannot.  A properly funded revocable living trust will name a successor trustee to manage your finances for your benefit when you are no longer able to do so.  It is not recommended to rely solely on a general durable power of attorney to handle the finances, as current Texas State law does not require financial institution to accept these documents.

While you are at it, make sure you have an up-to-date estate plan (i.e., a last will and testament, or revocable living trust), to provide for the efficient transfer of your assets upon your death. Your beneficiary designations should be reviewed, too.

If you or your loved ones have not yet planned for the possibility of Alzheimer's, then visit an experienced estate planning attorney without delay and get everything in order.

For more information about early planning before Alzheimer's, visit our website.

Reference: UT San Diego (October 23, 2014) "Legal, financial planning for Alzheimer's patients"

Financial Impacts of Elder Abuse

According to the new survey, the most common types of financial loss reported: funds disappearing from accounts (reported by 33%); unauthorized purchase of products or services (reported by 23%).

Are you or anyone you know a victim of elder abuse? With the occurrence of elder abuse largely underreported, there is likely someone you know that could be impacted.

A recent article in USA TODAY, titled "Retirement: Financial abuse costs victims avg. $30,000", reports that 19% of people ages 40 to 64 say they have an older family member or friend who has been the victim of elder financial abuse. This is according to a survey of 2,248 U.S. adults ages 40 and older conducted for Allianz Life. Elder financial abuse is defined as when someone takes advantage of an older person. This can include using their money improperly or without their consent or taking it for personal gain.

The original article estimates that about 52% of elder financial abuse victims report that they were taken advantage of by a family member, a friend, or their caregiver, with 22% saying it was a stranger. Others say it was the work of companies, churches, salesmen and other individuals.

Can you believe that the average amount lost is about $30,000, with 12% report missing over $100,000? Financial abuse can lead to shame and embarrassment on the part of the victims— a reason they tend not to report it, and there is a natural reluctance to report a family member or friend, along with a disbelief that it is happening.

Speak with a qualified elder law attorney to get more information about elder abuse and the answers and care you need.

For more information about elder abuse, visit our website.

Reference: USA TODAY (October 15, 2014) "Retirement: Financial abuse costs victims avg. $30,000"

Caring for Your Parents: Where Do You Begin?

There is no one right way to be a caregiver; everyone’s situation is different. You will find that, among a host of things, family dynamics, financial resources and the ability of your parent(s) to provide guidance for the support that they desire will shape your situation.

If you've been tasked to set up care for an aging parent or loved one, where do you even begin? What is the right way to go about this important task?

Luckily a recent PBS article, titled "How to care for your aging parents from a distance," assures us that there is no one right way to be a caregiver, as everyone’s situation is different. Caregiving responsibilities can entail at least information gathering and the coordinator of services.

One step is to ask your parent(s) to provide you with information to locate their important records, phone numbers, email addresses and other essential contact information.  This includes legal documents like their Living Trust, Durable Power of Attorney for Health Care and Durable Power of Attorney for financial matters. These should be created before a health condition makes it impossible.

The original article suggests that to keep things in order, long-distance caregivers will benefit from keeping a Care Notebook. This is a central place to maintain all critical information and can be digital or just a regular old three-ring binder with pocket dividers. Do not forget current info on your parent’s prescriptions. Also, if you hire professional caregivers for your loved one, keep a separate notebook to document medication administration and other basic physical and mental health status information. Instructions to paid caregivers should be in writing.

PBS provides a few other important suggestions, such as: 

Communicate. Whenever possible, include your loved one in the decision making process—especially choices on care and housing. Consider his or her expressed preferences and respect their values, even if they are not yours.

Education. Read up on the available care and services. Every region and location is unique in the types of services that are available, but some are found throughout the U.S.

Take Care of Yourself. Caregiving can be stressful, and you should have a support network for yourself.  Hire help and get other family members involved. Attempting to do it all yourself is not healthy or safe for you or your loved one.

Changing Needs. Remember that your loved one's care needs may change over time, and original article stressed that it is never too early to consider possible future needs. There are many options to be considered; making informed, well-thought-out decisions about your parent’s care are vital, and your elder law attorney can help.

The realization of your new role as a caregiver can be stressful. The good news is that you can contact a qualified elder law attorney to get more information and the answers you need.

For more information about how to be a caregiver, visit our website.

Reference: PBS (October 9, 2014) "How to care for your aging parents from a distance"

Early Planning before Alzheimer's Strikes

Medical research confirms one of the first things people have trouble with in the very early stages of dementia is managing personal finances. This means people can make very expensive financial mistakes, often before anyone notices there is a problem. I have seen this happen, and it is heartbreaking.

You never know what the future holds, so early planning for late-in-life health issues is essential.

For instance, you may notice that a loved one seems more disorganized than usual. Bills may pile up. The loved one may have difficulty remembering names and fumble for the right words. See a doctor if there are concerns. Alzheimer's and most forms of dementia are progressive. This means it will get worse over a few years.

Even before a diagnosis, it is important for people to discuss with their families how they would like to be helped. This includes who will be the primary caregiver and who will help with finances. According to a recent USA TODAY article, titled "Financial planning for dementia," a person with dementia often feels insecure that he or she will lose control and everyone else will tell him what to do, but conversations can help a person feel more independent and help families avoid misunderstandings.

Everyone should have a will, power of attorney and medical directive, and some find it helpful to have revocable living trust. Without these documents, a court may be required to appoint someone. This can be expensive, frustrating, and time-consuming.

In the course of the disease, a person may need help with a few acts of daily living and may have trouble communicating. At this point, someone else should take care of all financial matters, and it might be time to look at assisted living as the next step.

Healthcare costs for dementia patients can be substantial. It is very important to provide for the financial security of a healthy spouse. That is why it is a good idea to speak to an elder law attorney—he or she may be able to help a family protect some assets and income for the healthy spouse.

You should also consider the financial challenges associated with Alzheimer's disease and dementia, which can be substantial. Also, the choices for care can be overwhelming. An elder law attorney is a helpful resource to help you and your families manage costs and find the right care for your parent or relative.

Reference: USA TODAY (October 11, 2014) "Financial planning for dementia"

For more information about early planning before Alzheimer's, visit our website.