Social Security Benefits to Edge Up 1.7 Percent

Social Security COLA Going Up

The nation's elderly and disabled Social Security recipients will receive a 1.7 percent increase in payments in 2013. This is expected to raise the average monthly payment for the typical retired worker by $21.  The increase is less than half of last year’s 3.6 percent  cost-of-living adjustment (COLA).

In any case, the modest rise will be partially offset by Medicare's premium increases for 2013, which will be announced soon.  Most Medicare recipients have their premiums deducted from their Social Security payments.  The same COLA will apply to pensions for federal government retirees and most veterans.

“While this modest increase will help, much of the COLA will be consumed by health care and prescription costs, which continually outpace inflation," said Nancy LeaMond, executive vice president of AARP.  "Every day, retirees and other beneficiaries struggling to make ends meet still feel like they’re falling further behind.”

The COLA by the Numbers

Starting in January 2013, the average monthly Social Security retirement payment will rise from $1,240 to $1,261 a month for individuals and from $2,014 to $2,048 for couples. The 1.7 percent increase will apply to both elderly and disabled Social Security recipients, and individuals who receive both disability and retirement Social Security will see increases in both types of benefits.  The maximum Social Security benefit for a worker retiring at full retirement age, which is age 66 for those born between 1943 and 1954, will be $2,533 a month.

Social Security COLA also raises the maximum amount of earnings subject to Social Security taxation to $113,700 from $110,100.  This means that those earning incomes above $113,700 will pay no tax on any income above that threshold.

The COLA increases the amount early retirees can earn without seeing a cut in their Social Security checks.  Although there is no limit on outside earnings beginning the month an individual attains full retirement age, those who choose to begin receiving Social Security benefits before their full retirement age may have their benefits reduced, depending on how much other income they earn.

Early beneficiaries who will reach their full retirement age after 2013 may now earn $15,120 a year before Social Security payments are reduced by $1 for every $2 earned above the limit. Those early beneficiaries who will attain their full retirement age in 2013 will have their benefits reduced $1 for every $3 earned if their income exceeds $40,080 in the months prior to the month they reach their full retirement age.

For 2013, the monthly federal Supplemental Security Income (SSI) payment standard will be $710 for an individual and $1,066 for a couple.

You can find more links and information on our newsletter HERE.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Single? You Still Need an Estate Plan

Single People Need Estate Plans Too

Many people believe that if they are single, they don't need a will and other estate planning documents. However, estate planning is just as important for single people as it is for couples and families.

Estate planning allows you to ensure that your property will go to the people you want, in the way you want, and when you want. If you do not have an estate plan, the state will decide who gets your property and who will make decisions for you should you become incapacitated. An estate plan can also help you save on estate taxes and on court costs for your loved ones.

The most basic estate planning document is a will. If you do not have a will directing who will inherit your assets, your estate will be distributed according to state law. If you are single, most states provide that your estate will go to your children or to other living relatives if you don't have children.

If you have absolutely no living relatives, then your estate will go to the state. You may not want to leave your entire estate to relatives -- you may have close friends or charities that you feel should get something. Without a will, you have no way of directing where your property goes.

The next most important document is a durable power of attorney. A power of attorney allows a person you appoint -- your "attorney-in-fact" or "agent" -- to act in your place for financial purposes when and if you ever become incapacitated. In that case, the person you choose will be able to step in and take care of your financial affairs. Without a durable power of attorney, no one can represent you unless a court appoints a conservator or guardian. That court process takes time, costs money, and the judge may not choose the person you would prefer.

In addition, you should have a health care proxy. Similar to a power of attorney, a health care proxy allows an individual to appoint someone else to act as their agent, but for medical, as opposed to financial, decisions. Unlike married individuals, unmarried partners or friends usually can't make decisions for each other without signed authorization.

If you are planning to give away a lot of your money, there are ways to do that efficiently through the annual gift tax exclusion and charitable remainder trusts. Other estate planning documents to consider are a revocable living trust and a living will.

Don't think that because you are single, you don't need an estate plan. Contact your elder law attorney to find out what estate planning documents you need.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare to End 'Improve or You're Out' Standard for Coverage of Skilled Services

In a major change in Medicare policy, the Obama administration has provisionally agreed to end Medicare’s longstanding practice of requiring that beneficiaries with chronic conditions and disabilities show a likelihood of improvement in order to receive coverage of skilled care and therapy services. The policy shift will affect beneficiaries with conditions like multiple sclerosis, Alzheimer’s disease, Parkinson’s disease, ALS (Lou Gehrig’s disease), diabetes, hypertension, arthritis, heart disease, and stroke. (See companion article, "Who Will Benefit From the New Medicare Policy Change?".)

For about 30 years, home health agencies and nursing homes that contract with Medicare have routinely terminated the Medicare coverage of a beneficiary who has stopped improving, even though nothing in the Medicare statute or its regulations says improvement is required for continued skilled care.  Advocates charged that Medicare contractors have instead used a covert "rule of thumb" known as the “Improvement Standard" to illegally deny coverage to such patients. Once beneficiaries failed to show progress, contractors claimed they could deliver only "custodial care," which Medicare does not cover.

In January 2011, the Center for Medicare Advocacy and Vermont Legal Aid filed a class action lawsuit, Jimmo v. Sebelius, against the Obama administration in federal court aimed at ending the government’s use of the improvement standard.  After the court refused the government’s request to dismiss the case, and the administration lost in similar individual cases in Pennsylvania and Vermont, it decided to settle. 

As part of the proposed settlement, which the federal judge must still formally approve, Medicare will revise its manual that contractors follow to clarify that Medicare coverage of skilled nursing and therapy services “does not turn on the presence or absence of an individual’s potential for improvement” but rather depends on whether or not the beneficiary needs skilled care, even if it would simply maintain the beneficiary's current condition or slow further deterioration.

In addition, under the settlement Medicare beneficiaries who received a final denial of Medicare coverage after January 18, 2011 (the date the lawsuit was filed) are entitled to a review of their claim denial. 

“The Jimmo settlement provides hope for thousands of older and disabled people with chronic and long-term conditions who will now have a fair opportunity to get access to Medicare and necessary health care,” Judith Stein, Executive Director of the Center for Medicare Advocacy, told ElderLawAnswers.   

In an article about the accord, the New York Times notes that Medicare’s coverage of skilled care for beneficiaries with chronic conditions “could also provide relief for families and caregivers who often find themselves stretched financially and personally by the need to provide care.”

Although the Times quotes a trustee of the Medicare program that the change will cost Medicare more money, it could also save some money because physical therapy and home health care may help keep beneficiaries out of more expensive institutions like nursing homes and hospitals.   

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Reverse Mortgages Are Causing Some Homeowners to Lose Their Homes

Reverse Mortgages

A reverse mortgage can be a great tool in the right circumstances, but if you aren't careful you could end up losing your home. A recent front-page article in the New York Times lays out some of the problems homeowners are encountering with these mortgages.

You must be 62 years or older to qualify for a reverse mortgage, which allows you to use the equity in your home to take out a loan. The loan does not have to be paid back until you sell the house or die, and the loan funds can be used for anything, including providing money for retirement or to paying for nursing home expenses.

It all sounds like a no-lose proposition, but there are downsides. For example, these loans carry large insurance and origination costs, they may affect eligibility for government benefits like Medicaid, and they are not ideal for parents whose major objective is to safeguard an inheritance for their children. There also have been complaints about aggressive marketing techniques.

In addition to these drawbacks, the Times points out two more important potential pitfalls:

Pay attention to whose name is on the mortgage. When purchasing a reverse mortgage, be sure to put both spouses' names on the mortgage. If only one spouse's name is on the mortgage and that spouse dies, the surviving spouse will be required to either pay for the house outright or move out. This might happen if only one spouse is over 62 when the mortgage is signed. According to the Times, some lenders have actually encouraged couples to put only the older spouse on the mortgage because the couple could borrow more money that way.

Watch out for a lump-sum loan. Usually reverse mortgages come in a line of credit with a variable interest rate. This allows homeowners to take money only when they need it. According to the Times, some brokers have been pushing lump-sum loans because the brokers earn higher fees. The problem is these loans have a fixed interest rate. The interest charges are added each month, so that over time the total amount owed can surpass the amount of the original loan.
The Consumer Financial Protection Bureau, which was created in the wake of the mortgage crisis in part to scrutinize consumer mortgages, is working on new rules to better regulate reverse mortgage lenders and provide disclosures to seniors.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare Suit Settled

The following article was taken from Robin G. Smith Consulting

Medicare settles suit - this could be huge

There are several confusing, and ultimately, for patients, expensive Medicare policies concerning what Medicare will and will not cover in nursing homes. Last month, Medicare settled a lawsuit challenging the current policy that a patient in a SNF had to be “improving” to be eligible for the full 100 days of Medicare payment. Now, if the person would decline without SNF care, Medicare will pay. This still leaves the dreaded ”inpatient vs observation”  rule, which hospitals are abusing, and for which patients are paying dearly. There is a class action suit pending on that, too.

The “Direct Primary Care” model has started to rate news articles, as large employers, as well as states, pay primary care clinics directly to care for their employees. United Air­lines teamed with Walgreens to build a clinic at O’Hare air­port in Chicago. Montana has built a primary care clinic for state employees, which has been very well received. Wal­mart has negotiated bundled payments for expensive surger­ies for its employees. Sears and Darden restaurants are offer­ing a voucher to their employees to shop for healthcare. And estimates are that 7% or more of doctors are going to a “Concierge” care model. (By the way, I offer a prepaid pri­mary care plan that is very strong in RI, and the Boston area.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.



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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in RI for wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits. They practice Pension and Retirement law as well with a focus on Qualified Domestic Relations Orders (QDRO), Military Pension Orders, Civil Service Orders, as well as Consultation on Pension issues. They also are Newport RI Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and Military family law.

They offer Elderlaw Mediation for disputes and intergenerational issues as well as probate court resolution. They also do Superior Court Mediation and Arbitration as well as Pension Mediation. Mediation and Arbitration is also offered by the firm for divorce mediation, separation, and all family law issues pre and post divorce.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

When In Doubt…Don’t

When in Doubt...DON'T

We all run into ethical questions. As the law office “elder” I am the go-to guy for ethical questions for my associate attorneys, my law school interns and my clients. My answers are often predicated on legal rules of ethics or case-law or past experience but most of the time the phrase: “When In Doubt, Don’t!” covers the situation. Our common sense and our gut reactions usually supply good answers.

One problem comes up often in an elder-law practice. We receive a call from a relative of someone who is receiving State or Federal assistance. We’ll call that person the recipient and the caller the relative. Recently, a relative called because her sister was about to receive a bequest of more than $20,000 from a deceased parent. The recipient was receiving state housing assistance and other benefits. The relative wanted to take the money for the recipient and keep it separately for the recipient’s benefit without disclosing the bequest to state authorities. Another case was reported in Elder-law News this week. In that case, the recipient received State Supplemental Security Income (SSI), Medicaid and housing assistance. Her aunt was giving the recipient $10,000 per year as part of the aunt’s estate planning. Her sister had the recipient endorse the check to her so that she could set the money aside for the recipient’s benefit.

The result of such actions could be fines, penalties and loss of the benefits. In both cases, the relative knew instinctively that the transfer of the money was not proper. There are legal means to accomplish the goal of assisting the recipient. Certain allowable items can be purchased and it might be wise to make those purchases, be disqualified for a month and then be qualified in the next month. Another option is a special needs trust established by the donor, her parents, or the court. This also might cause a month’s disqualification but in the long run the recipient will be better off if we all follow our honest instincts.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.