As an elder care legal specialist, all of my clients should create a Durable Power of Attorney as part of the estate/retirement planning

The Basics of Medicare

Many senior citizens and their families do not understand the basics of the Medicare program. My objective, here, is to provide a quick overview of the program. Future blog posts will discuss eligibility, coverages and costs.

Medicare is a health insurance program, established under the Social Security Act of 1965 and signed into law by President Lyndon Johnson. It provides insurance coverage for medical expenses for legal U.S. residents of age 65 years or older, for residents under 65 who are permanently disabled and for others who meet certain criteria.

The Medicare program is divided into four parts: “Part A,” “Part B,” “Part C,” and “Part D.” “Part A” covers in-patient hospitalizations and related costs, including a semi-private room, meals, medical testing and associated doctors’ fees. It also covers (limited) in-patient rehabilitation and nursing-home care, hospice care and some home heath care services.

“Part B” covers medical services such as doctor’s visits, out-patient hospital treatments, and home care; this coverage is optional and requires a separate premium payment for most participants.

“Part C” is an elective coverage called the “Medicare Advantage Plan;” this plan, which involves a monthly or annual premium payment, works like a regular HMO or PPO insurance offering.

“Part D” is the new (2006) prescription drug insurance coverage.

Typically, Medicare pays up to 80% of an approved medical expense, while the beneficiary pays the remaining 20%.

Click on the following links for additional resources to learn more about Medicare:

The Official U.S. Government Medicare Website

The American Association of Retired Persons (AARP)

Remember, when you need help with Elder Law issues, including Medicare and life care planning, call DeLoach & Hofstra to get a Board Certified Elder Law attorney who will fight for you. Our firm is large enough to handle the most complex and sophisticated cases, but small enough to deliver the personalized service our clients need.

Legal Issue Insights

The Florida Legislature recently passed a bill drastically changing the existing durable power of attorney statute. Governor Rick Scott has yet to sign the bill but it is expected to become law shortly. When it becomes law, it will affect powers of attorney executed on or after October 1, 2011.

The new statute makes a great number of changes to the old law, clarifies some previously existing “gray” legal areas and greatly expands the previously existing statute. Some key provisions include:

•Powers of attorney must now be notarized as well as have two (2) witnesses for valid execution;

• Powers of attorney executed in other states are valid in Florida if validly executed in their state of origin;

• Special rules are provided for co-attorneys-in-fact;
• “Springing” Powers of attorney are eliminated after the effective date, although Springing powers executed before the effective date are still valid;
• Certain powers contained in the document must be initialed in order for the attorney-in-fact to perform such actions;
• Only qualified people can get paid to serve as the attorney-in-fact; and
• Much more specific standards of conduct must be followed by the attorney-in-fact.

You can view the contents of this bill here.

The net effect of this bill will provide for drastic changes to your average power of attorney. At DeLoach & Hofstra, we continuously work to improve and update our powers of attorney. This is another opportunity to make our documents even better and help our clients as best we can.

A person who accepts the role of Personal Representative (known as an “executor” in other states) in a person’s will has numerous responsibilities once that person dies. In Florida, the Personal Representative typically takes the following actions:

• Hires an attorney to become appointed Personal Representative by the Probate Court

• Identifies all the deceased’s assets, including descriptions, locations, and valuations

• Prepares a formal inventory for the probate court and beneficiaries

• Completes paperwork to change the title of assets from the decedent to the estate

• Pays all appropriate debts and taxes due on the estate

• Defends the estate against any lawsuits or other difficulties

• Distributes the assets in accordance with the deceased’s will or under the laws of Florida

Legal Issue Insights:

There is considerable work involved in being a person’s Personal Representative. It is not simply an honor bestowed upon a friend or relative. Family disputes frequently arise out of the distribution of a deceased’s estate. The Personal Representative executor, ideally, should be someone who is neutral among family and other beneficiaries.

Call DeLoach & Hofstra to get a seasoned, reliable attorney to help you with estate planning or probate issues, and to better prepare your Personal Representative.

One of the most misunderstood areas of Elder Law involves benefits from the Veterans Administration. We frequently receive phone calls from those inquiring about VA benefits, but they do not know where to go or how to begin. As part of our Elder Law and Life Care Planning, we frequently look to the VA to assist with the extraordinary medical costs for our clients.

The program we mostly used is the VA Pension program, which can help needy veterans and his or her surviving spouse with their medical bills. The Pension program is frequently referred to as Aid & Attendance, but this is actually a misnomer. The Pension program can provide up to $1,949 per month for married veterans and up to $1056 per month for the veteran’s surviving spouse. In our practice this extra money may be the best way to keep your loved one in an assisted living facility for longer.

When you need help accessing Aid and Attendance for your Veteran, please do not hesitate to contact us.