Real Sage Advice

Boomers and Beyond

I've been invited to be a part of a panel discussion on ways Baby Boomers can plan ahead to live those retirement years to their fullest.  The title of the event is "Boomers and Beyond: Hot Topics to Prepare You for the Times Ahead. The panel consists of a financial planner, elder law attorney, funeral pre-planner, president of a home health care company, and your's truly.

You're all invited encouraged to attend. Of course, there's no charge for admission, but you do need to register by calling  952-292-5801

Where: Grace Church, 9301 Eden Prairie Road, Eden Prairie MN 55347
Access seminar through door #4 at Grace Church
www.atgrace.com
When: Tuesday, April 28
7 pm – 9 pm

 

 

There's a difference between "alone" and "lonely"

I love being alone. Perhaps it's because I'm seldom in a room alone (I'm not counting my dog or parrot here), or just because I'm an only child. I look forward to time alone to read, reflect, write, or do whatever I feel like doing. I revel in it. I rejoice in it.

But, plunk me into a room full of people where I don't know anyone and it's excruciating. I feel downright lonely. Yes, I'm outgoing and truly like getting to know new people, but I do not like being lonely. Going out to eat alone is another lonely experience I avoid like the plague.

We don't often draw the distinction between being alone, and feeling lonely.

One of the topics I often talk about with families of elderly loved ones is support networks. If the adult children are adamant that their mom or dad must move because they no longer have friends in the neighborhood, I often ask about the support network. Is there someone their elderly parent can call on if needed? Perhaps it's OK if their parent is alone. It doesn't mean they're lonely. And, if the senior isn't complaining about feelings of loneliness, perhaps being alone is not a criteria for a senior to move.

On the other hand, perhaps loneliness is a reason to consider moving. A recent study at the University of Chicago found that loneliness or feelings of isolation can have a negative impact on senior's mental health:

The most socially connected older adults are three times as likely to report very good or excellent health compared to those who are least connected, regardless of whether they feel isolated.

Older adults who feel least isolated are five times as likely to report very good or excellent health as those who feel most isolated, regardless of their actual level of social connectedness.

Social disconnectedness is not related to mental health unless it brings feelings of loneliness and isolation.

As we discuss whether or not it's time to move with aging loved ones, consider whether being alone truly means being lonely. 

Other Blog Articles

Is it dementia or is depression?
10 Laws of Moving for Aging Parents and Their Families
8 Tips for Finding the Right Assisted Living Community

What does Medical Assistance have to do with selling a home? More than you might think!

I received a phone call yesterday morning from Amy*.  Amy was referred to me by A Place For Mom, a company that helps families find senior housing.  Amy holds a Power of Attorney for her elderly mother. Her mother has been living with her for 18 months, and Amy has been trying to get her mother’s house sold so she has the money to pay for health care services.  Amy has a full time job, small children, and is trying to take care of her mother, which has become another full time job.  Amy is stuck in the sandwich generation until she gets money, or benefits, to help with her mom’s care.  Amy just received a denial letter from Medical Assistance, denying benefits to her mother for an unusual reason.  Not because her mother didn’t financially qualify, not because her mother didn’t need health care services, but because her mother’s house, which is still listed for sale, is priced below the home’s tax assessed value.  (I’ll wait here while you finish shaking your head in disbelief).

This isn’t a new rule.  The rule was created so Amy’s mother doesn’t try to sell her home to a friend or family member for $100, and then have the government (Medical Assistance or Medicaid) pay for her healthcare.  The rule protects the system and the taxpayers from being ripped off, which is certainly a legitimate concern.  (Lately it seems if rules aren’t in place, people get ripped off, i.e. American taxpayers and AIG). 

We know that tax assessed values of properties tend to lag behind market values.  A few years ago when home prices were selling well above the tax assessed value, we seemed to have forgotten about this rule.  Now that it seems more common for homes to sell below the tax assessed value, it has become an issue for many adult children and seniors who are selling homes due to health issues.

So if you are a senior, the adult child of a senior, hold a Power of Attorney for a senior, or are the nominated executor of an estate, here is what you need to know to protect yourself against additional taxes, denial of benefits, or potential property liens:

1)      Plan ahead.  If there’s even a remote chance the homeowner is going to need some kind of health care in the next several years, make sure you follow these steps.

2)      Work with a REALTOR who specializes in working with seniors.  They’ll be able to make referrals to professionals that can walk you through this process.

3)  Know and work with a good elder law attorney. Not only can they potentially help you protect assets, but also ensure you don't do anything today in the sale of your home that could (i) cause you to pay more taxes (ii) have a lien placed on your home (iii) limit benefits available to your elderly loved one.

4)      Build a body of evidence to show you are selling (or at least trying to sell) the home for fair market value.

a.       Get at least one (two is better) independent appraisals to document the home’s actual fair market value.

b.      When you first put the home on the market, list it at the tax assessed value, then work with your agent to lower the price to the ACTUAL fair market price.  This shows that you did try to sell the home at the tax assessed value before lowering it, and that a sale at the tax assessed value simply was not going to happen. (As a REALTOR I don’t like this one, but it is at the suggestion of an elder law attorney** I trust, so naturally I’ll suggest it to my clients.) 

5)      Keep all of your documentation in a safe place. In addition to keeping a copy yourself, you may have your agent  scan your documents, so they’ll be stored electronically for at least 7 years.  Real Estate Brokers are required to keep copies of their files for 7 years, and an appraisal and records of tax assessed values and list prices are within the realm of what a broker could keep.

6)      If you are in the process for applying for Medical Assistance, and the home is listed for sale below the tax assessed value, be prepared for your application to automatically be denied.  The denial can be appealed, however.  If you’ve taken the previous steps, you’ve armed yourself with documentation to show you really are trying to get the house sold for a fair price, and not trying to take advantage of the system.  This will be extremely beneficial to you during the appeal process.

*Name changed to protect privacy

DISCLAIMER.  This information is not to be construed in any way as the author providing legal advice to the reader.  Every person’s situation is different and thus the most appropriate legal advice for any particular situation could deviate from this information somewhat.  You should consult with a qualified Elder Law attorney if you have any questions about this information.

**Craig P. Goldman is an attorney who concentrates his practice on Elder Law, Estate Planning, Disability Planning, and Probate.  He can be reached at the following:

Craig P. Goldman

Messerli & Kramer, P.A.
150 South 5th Street, Suite 1800
Minneapolis, MN 55042
(612) 672-3640
cgoldman@messerlikramer.com

 

Other Blog Articles

Shop for the right senior housing
Strategies to help aging parents with money management
Seniors at risk for fraud and sub-prime loans-STILL

Healthcare in Retirement: Quality & Cost Savings

If you are within just a few years of retirement you have probably begun to think about your dream retirement location. Perhaps this is your chance to finally build that log home in Montana and hit the slopes or head south to a balmy beach getaway for your year-round residence. You may even have taken the next steps: planning for that move financially and considering how you will spend your time - maybe lots of tennis and golf or taking up new hobbies like snowboarding, sailing or starting a rock band. (You never know…) If you’ve gotten that far, you are well on your way to enjoying satisfying retirement years.

Many of the articles posted on this blog are centered around elder health and housing. I don't spend a lot of time talking about those vital retirement years, because most baby boomers don't have difficulty figuring out how to spend their retirement time. If anything they continue to not have enough time for all of their interests!

If our parents have not done adequate planning we see them have limited choices available to them for long term care.

During your busy active early retirement years, I hope you'll consider the resources needed to cover healthcare and insurance costs for your healthcare.  A little planning now can open more health care choices to you in the future, AND allow you to spend less on your health care and more on enjoying retirement!  

While you're planning, it's a good idea to invest some time to find the best-ranked doctors and hospitals and to learn more about ways to save on healthcare costs.

A colleague of mine with a very unique business helps baby boomers with healthcare planning. If you are wondering what kinds of healthcare options might be available to you, and how planning ahead might help you, I encourage you to give her a call and investigate what kind of planning you can do to help meet your retirement goals.

Nancy O'Brien, MPA-Health Health Resource Planning & Transition Consulting Evergreen Health Advocates 651-336-3728 Cell

Helping Families Navigate Healthcare, Housing, Medicare & Insurance

nancy@evergreenhealthadvocates.com

 

 

Memory Care for Older Adults Hard to Get. Understand What it Means if You Wait.

Because of my chosen occupation I have countless discussions every week with people about why they are or are not ready to move.

One older adult I've been acquainted with for 3 years (I'll call him Steve) says "I'm going to stay put in my house, until they carry me out".  For most of us, this seems like the ideal plan. Astrally, most of us do want to stay in our homes for as long as possible.

 Unfortunately, Steve stopped driving about one year ago, and was just diagnosed with early stage dementia.  Even though he admits to bouts of loneliness he still wants to stay in his home for as long as possible. This is the stuff that keeps adult children awake at night.

I don't have all the answers, but I do think Steve should be empowered to make decisions for himself for as long as possible. As long as he isn't in any physical danger, and has a reasonable support system in place, he should be able to stay home. But, I tell him all the time, he has to have a plan.

Here is the reality of what is happening in the Twin Cities Senior Housing market. Vacancies in Independent Senior Housing Communities are up...way up. Vacancies in some assisted living communities are also on the rise. Vacancies in reputable memory care communities are non-existent. They are almost always full. The people who get preference for openings (pay attention here) are the current residents in the independent and assisted living communities.

Steve's doctor told him he would likely be able to stay at home for 2 more years. Steve's doctor did not tell him that waiting until he could no longer stay at home means he will likely end up in a nursing home instead of a facility that specializes in working with people with memory loss.

It's ironic. Steve is fighting to stay in his home so he continues to feel in control. Yet, his fight for control today means he will have very little control of his placement when the time comes. He'll simply get what's left over.  

Other Senior Housing Blog Articles

Men out number women in senior housing

8 Tips for finding the right assisted living community

Senior Housing in Minnesota

Long-Term Care: Invest in an Independent Old Age

Long-Term Care: Invest in an Independent Old Age

As a relative newcomer in the world of insurance products, long-term care policies are still suspicious for some potential customers who worry that the coverage is just another way to get at their precious retirement funds. If well-researched and carefully purchased however, such policies have the advantage of:

• protecting assets and guarding against debt in later life as care expenses mount.
• freeing up more funds to support quality of life in retirement.
• ensuring that long-term care is handled according to the individual's wishes and at the level of quality they desire.
• saving loved ones from having to make difficult decisions or committing themselves to the life of a full-time caregiver.

Prospective long-term care policy customers should thoroughly research all their options before committing to a policy. Some special points to consider include:

Shared Care

- Married couples should investigate policies with options that allow them to split the benefits. Before looking for

insurance quotes

, things to investigate include riders that lower the premium in the event of the death of one spouse and piggyback provisions that allow one spouse to access the other's unused dollars for a given year.

Inflation Protection

- The ideal situation is one in which premiums remain the same, but benefits increase annually. Some policies give holders the option to purchase stepped-up care each year rather than such an increase taking effect automatically. (Beware scenarios where benefits freeze if such increases are not purchased.)

Medical Determination

- The decision to activate long-term care is fraught with emotions and often complicated in familial terms. Choose a policy that allows the holder's personal physician to say when the need exists for the care benefits to be activated in order to minimize the emotional downside of such a transition.

Remaining At Home

- More and more seniors are opting to age in their own home with assistance. Be sure your policy allows for in-home care for such things as physical modifications to the structure, the purchase of assistance devices, and the hiring of health care staff. (Also make sure that if the transition to a care facility is required your benefits will continue at an acceptable level or that there is room for re-negotiation at that time.)

Life Insurance with Long-Term Care Option

- An increasingly popular product are life insurance policies that allow the holder to convert the accrued value for use to finance long-term care. These hybrid policies offer the security of the long-term care option while providing a benefit for heirs if such care is not required.

Far from being a gimmick or a scheme, long-term care policies can give aging individuals life-long control over their own destiny rather than forcing them to accept decisions made for them by loved ones or medical personnel. People don't think anything at all about insuring their cars or homes. So why not manage the most important risk factor of all, independent old age?

9 Trends for Senior Housing in 2009

A quick tour of recent headlines around the Internet show a trend with seniors and senior housing:

Seniors can't sell their homes  Denver News

Builders Lament Senior Housing Interest-Reverse Mortgage Guide

Senior Equity Falls, Millions Remain-Reverse Mortgage Guide

More families Move In Together During Housing Crisis-USA Today

Sunrise Assisted Living Suggests Financial Options for Senior Care - Senior Housing News

This tour I took of the headlines today made me dust off my crystal ball. I don't proclaim to be an expert, just a real estate agent who works with seniors, understands senior housing, and is willing to take a few guesses at upcoming trends for the year:

1. Prices for senior housing will follow the trends of the rest of the real estate market.Rising vacancy rates will lower rents, and senior condominium and cooperatives will experience downward pressure of purchase price.

2. There will be more and more small businesses springing up around the Twin Cities offering services to seniors.After all, people are losing their jobs, and with the coming age wave, there's a perception that this is the field to be in if you want to make money. Caveat Emptor!

3. I just recently started offering The Senior Relocation Program to seniors which includes a guaranteed sale of their home. If I can't sell it, my partner will buy it. The Minneapolis Star and Tribune even wrote about it. I suspect I'm going to hear from a lot of seniors who want to move, but can't figure out how to sell their homes. It will still be a good year for business for those of us that identify the need and offer the service to fill it.

4. There is going to be a slowing of building new senior housing developments. For the sake of existing senior housing in the metro area I hope I'm right about this one.

5. There will be a conversion of how existing senior housing communities use their space.We'll see some of the independent senior housing communities transform their space into community rooms, exercise facilities open to the public, and even memory care and assisted living care communities. You just can't have that much empty space when you have a mortgage to pay.

6. Unfortunately, we're going to see an increase in the number of moves for seniors that are crisis driven. I'll be hearing from more adult children who leave a family meeting with a transitional care unit social worker where they hear "Your mom shouldn't go home. By the way, we're discharging her tomorrow."

7. There will be an increase in Reverse Mortgage utilization. As our seniors learn more about options and choose to stay home, they'll utilize the equity in their home to pay for services to age in place.

8. Families are going to come up with creative housing and caring for aging solutions. I really do believe this current economic downturn and housing price correction is going to foster the opportunity for new solutions for seniors. Families will figure out new solutions today that we haven't previously thought of. We'll see more mother in law apartments, more families living together, perhaps even neighborhood associations developing solutions to help neighborhood seniors. The solutions that start to sprout up over the next couple of years will be driven by grass root efforts, and will be perfected by the baby boomers. I do not believe baby boomers will occupy all of these age segregated housing communities as they are today. This is the housing development industry's opportunity to "right-size."

9. The newspaper and media will continue to highlight the gloom and doom of our current predicament. You'll continue to hear how lousy the real estate market is, how seniors can't move even though they want to, and how miserable the human race has become.  

Attitude really is everything. Will you be empowered to figure out how to solve the challenges that face you...or will you believe the gloom and doom of the headlines and believe your powerless?

First step-stop watching the news.

Minnesota Caregivers

Minnesota has the largest percentage of informal cargivers in the nation. As much as a 1% decline in our number of volunteer cargivers would cost our health system millions of dollars.

All of our state programs had to take a cut this year. None of us want to see "our programs" take a hit. I, of course, was very concerned about Minnesota seniors when the new budget was revealed. Governer Pawlenty actually spared Minnesota seniors from a disproportionate number of financial cuts, which I was relieved to see.

A survey conducted by AgingCare found that although adult children are often responsible for paying for their aging parent's care, the large majority of caregivers are vastly unprepared.

The survey found:

63% of caregivers have no plan as to how they will pay for their parent's care over the next five years.

62% say the cost of caring for a parent has impacted their ability to plan for their own financial future.

As a Senior Real Estate Specialist I meet with a lot of adult children who have been the primary caretaker for aging parents, often in their parent's home. I see how tired and concerned you are.

Please, go call a Geriatric Care Manager.  Aging Care's survey does not detail which state the survey respondents were from. We are SO lucky to have the resources we have in Minnesota--despite all of the budget cuts. You do not have to be as tired or as responsible.

Senior looking to "downsize" gets the last laugh.

Edina Realty used this commercial last year, and plans to build on it this year. After the Minneapolis Star and Tribune article yesterday about Seniors being "houselocked" I thought I'd pass this on. Hope it makes you smile.

Two minutes of fame

I wrote about talking with a Minneapolis Star and Trib reporter about trends with seniors and moving into senior housing. The article was published today, and except for the claim I used to be a psychologist (should be psychotherapist) I can say I was quoted correctly, and Warren Wolfe did a nice job of accurately reflecting what's happening with seniors. He had to do it in one column, I've had 2 years to write on this blog, and don't think I'm done yet!!

It's always a little nerve wracking to talk with members of the media, because you're not sure in what context you'll be quoted. Thanks, Warren!