Medical Records: What Are My Rights?

WHAT ARE MY RIGHTS REGARDING MY MEDICAL RECORDS?
HOW DO I GET MY MEDICAL RECORDS FROM FORMER DOCTORS?


Question: I used to go to a doctor in Colorado, but then I moved to California and went to
another doctor. I signed a release for the California doctor to obtain records from the one in Colorado. Later on, I had to go to yet another doctor, who asked me for all pertinent past records. To get the ball in motion, I sent a certified letter to the California doctor and asked for the records she had obtained from the Colorado doctor. She sent a certified letter back saying that she was prohibited by law from giving me these records and that I had to go directly to the Colorado doctor to obtain them. I do not want her to keep these records, and I need them for my new physician. Is it true that the law forbids her from turning my own medical records over to me or a new doctor of my choice?


Answer: Legally, you have a right to a copy of your medical records. But it is also true that you will have to go back to the original doctor that you saw for many types of medical records. Your new doc should have no problem getting records from both of the old docs with nothing more than your signed consent form. But all evaluations and test results must come from the original source, and you, the former patient, must ask for them directly. Another person can procure those records for you only if you have given him or her a medical power of attorney. You shouldn't be charged more than a nominal fee for staff time and copying, and you should receive the information within the week.
For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Do I Need a Durable Power of Attorney

IF I BECOME ILL OR INCAPACITATED, WILL I NEED A DURABLE
POWER OF ATTORNEY IF I ALREADY HAVE A LIVING TRUST?

Question: I have a living trust that designates a successor trustee to manage the trust in case I become incapacitated. Do I also need a durable power of attorney?

Answer: You should still have a durable power of attorney for finances. Think of your successor trustee as reigning over a limited kingdom - your living trust, with whatever property you have put into it. If you become incapacitated, your trustee will have power over all this property and be able to use it for your needs - but that's where the power ends. Your successor trustee has no power over property outside the kingdom walls. And most people transfer into a living trust only assets that are too expensive to put through probate, such as real estate and valuable securities; few transfer all their property to a living trust.

Personal checking accounts, for example, are rarely transferred to a living trust - and most people want someone to be able to make deposits and pay bills from these accounts. You can grant this power to an "attorney-in-fact," or agent, using a durable power of attorney for finances. Also, under a durable power of attorney, you can give your attorney-in-fact the authority to handle tasks such as collecting government benefits, filing tax returns, handling legal actions, and dealing with many other matters that are also outside the boundaries of your living trust.

You may even want to empower your attorney-in-fact to transfer into your living trust any property that becomes yours after you become incapacitated. Only a durable power of attorney for finances can grant that authority.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Are Living Trusts Law Suit Proof?

IS PROPERTY IN A LIVING TRUST AT RISK IN A LAWSUIT?


Question: My grandparents are being sued over a car accident. The other party found out my grandparents' net worth, started seeing dollar signs, and asked for $125,000. Can the money that my grandparents put in a living trust be taken if the other party wins?

Answer: A standard, revocable living trust - in which your grandparents are both the grantors (the people who set up the trust) and the trustees (the people in charge of the trust assets until their death) - doesn't offer any protection if your grandparents lose a lawsuit. Trust property is treated just like any other asset. No wonder some people hide their money under the mattress

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Fend Off That Collection Agency

Among debt collectors, Steven Katz is known as a “credit terrorist.” For years, he has run what he calls the Steven Katz School of Bill Collector Education, otherwise known as the “credit terrorist training camp.”

Mr. Katz, a 58-year-old accountant in suburban Tucson, spends his free time schooling debtors on the finer points of consumer protection law to help them turn the tables on debt collectors. On occasion, he thumbs his own nose at them too.

“How many times can I sue you? Let me count the ways,” he wrote under his pseudonym, Dr. Tax, in a March posting on Inside ARM, a debt collectors’ Web site.
A former bill collector himself, Mr. Katz rebelled after a debt buyer damaged his credit score with what he says was a bogus bill. Mr. Katz sued, and in 2003 he collected his first damage award, a $1,000 check that he now keeps framed behind his desk.

“The bill collectors, when they call, make you feel like the only option you have is to lay down and play dead. That’s not true,” said Mr. Katz said, who does not charge for his advice. “Nothing validates this more than getting a check.”

Call this movement revenge of the (alleged) deadbeats. Even as collectors try to recoup debts from millions of Americans struggling to pay their bills, a small but growing number of lawyers and consumers are fighting back against what they describe as harassment, unscrupulous practices — and, most important to their litigiousness, violations of the Fair Debt Collection Practices Act.

In fact, 8,287 federal lawsuits were filed citing violations of the act in 2009, a 60 percent rise over the previous year, according to WebRecon, a site that tracks collection-related litigation and the most litigious consumers and lawyers on behalf of debt collectors.

On Wednesday, the Supreme Court made it even easier for consumers to use the courts to fight debt collectors, ruling that collectors cannot be shielded from suits by claiming they made a mistake in interpreting the law.

When a consumer stops paying a bill, creditors often try to collect on their own for a few months. In many instances, the creditor hires another company to collect the debt. In other cases, they may dispose of the debt by selling it to a debt buyer for a steep discount.

Debt collectors and debt buyers are the targets of litigious consumers, since the debt collection law primarily applies to third-party collectors.
Peter Barry, a Minneapolis trial lawyer, is so bullish on the future of debt collection litigation that he holds several “boot camps” each year to share his secrets with other lawyers who want in on the action. If the debtor wins a court case under the act, the debt collector must pay the lawyer’s fees.

The next boot camp is being held in early May in San Francisco, at a cost of $2,495 a person for two and a half days of instruction.
“I can’t sue every illegal debt collector in America, although I’d like to try,” Mr. Barry said.
Mr. Katz can also claim some credit for the increase in lawsuits. For six years, he has run a free Web site called Debtorboards.com, where people share tips on topics like keeping a paper trail and recording calls from collectors.

He said the site received two million hits in 2009, a 60 percent increase over the previous year.
“Debtorboards is geared to help people use the laws as they are on the books as both a shield and a sword,” said Mr. Katz, who says he has won $36,000 from his own litigation against collection agencies. (Since many of the settlements are confidential, it is difficult to prove the claims of Mr. Katz and others).

Of course, debt collectors are hardly pleased with the litigation trend.
Rozanne M. Andersen, chief executive of ACA International, a trade association for the debt collection industry, said she was “extremely concerned” about the increase in lawsuits, which she said cost her industry hundreds of millions of dollars a year. She said much of the increase was the result of ambiguous language in the Fair Debt Collection Act.

Debt collectors are required, for example, to identify themselves on a voice message left for a consumer, she said. But they are also prohibited from telling a third party — including someone who might overhear a phone message — about a consumer’s debt.
“We are between a rock and a hard place,” Ms. Andersen said.
Ms. Andersen said she had little patience for Web sites that encouraged consumers to thwart debt collectors.

“We believe those types of Web sites are encouraging people to not take responsibility for just debt,” she said.

Jack Gordon, who runs the fee-based WebRecon site, said it was no wonder lawsuits were increasing, because consumers were being bombarded with ads from lawyers when they searched online for information on debt collection. He said the proliferation of discussion sites like Mr. Katz’s had, to a lesser extent, also contributed to the trend.

On the boards, he said, “There’s a lot of hot air, a lot of people who overinflate their accomplishments.” Regardless, Mr. Gordon’s database has become a badge of honor among the devotees of Debtorboards.com. As Brandon Scroggin, a 37-year-old from Little Rock, Ark., puts it, “That’s one list I’m a proud card-carrying member of.”

Mr. Scroggin, who provides price estimates at a body shop, said he was the type of person who refused to be taken advantage of, even for petty offenses. For instance, years ago, he said he joined in the class-action suit against the pop group Milli Vanilli, accused of lip synching, and collected a $1.25 check.

After a messy divorce, Mr. Scroggin was stuck with a $7,000 bill that he said belonged to his ex-wife. Instead of paying it, he began researching the law and stumbled on Debtorboards.com.
Armed with lessons he learned on the site, he demanded proof of the debt from the collection agency, and the calls stopped. But two and a half years later, they started up again so he sued the collection agency, National Loan Recoveries, for failing to provide proof of the debt, among other things.

The case was settled in 2008. The terms were confidential, but he says he never paid National Loan a dime. “Let’s just say I’m a very happy person,” he said. A lawyer for National Loan, Kathryn Bridges, did not return messages seeking comment.

Mr. Katz said his Web site was not intended to help people avoid paying legitimate debts. But if they do so, so be it — he feels no need to apologize.

He said Congress gave consumers certain rights, and he is simply making people aware of them, sometimes colorfully.

As Mr. Katz says at the bottom of each Dr. Tax posting, “A telephone in the hands of a collector is like a crowbar — it can be used to pry a mouth open wide enough to insert a foot.”
Barbara Thompson, 46, of Atlanta, said she challenged $11,000 in credit card debt using online research about collection laws. She does not dispute the debts but reasons that the credit card company wrote off her charges long ago. By her account, she owes the credit card company, not the debt collector.

“The credit card company, they sell it off, they charge it off, it’s just business as usual,” she said, adding, “I’m adamant about not paying a collection agency.”

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Next Year's Taxes Will Be Higher For Seniors

As you race to get your 2009 federal income tax return in the mail, take a moment to consider the tax landscape. It's changing, especially for senior citizens, and it's not too early to start planning for it.

No matter how you slice it, taxes are probably headed higher, if not this year then next year for certain. The income tax reductions enacted in 2001, often referred to as the "Bush tax cuts," are set to expire at the end of this year. It's possible Congress could vote to extend them for a year or two, but unless the economy slides back into a recession, few analysts expect that.

That means starting next January chances are you will move into a higher tax bracket, even if you're not making any more money. In most cases, you can expect more money to be withheld from each paycheck.

Currently, the top tax brackets are 35 percent and 33 percent. These are the rates paid on income by the wealthiest Americans. When the tax cuts expire, the top tax rate will rise to 39.6 percent.

There are bigger changes farther down the tax table. The tax cut law added two extra tax brackets; a 25 percent bracket and a 10 percent bracket. When the law expires, the 25 percent bracket reverts to 28 percent while the 10 percent bracket moves up to 15 percent - the largest increase of all.

Also set to expire are some reductions in taxes on investment income.

Deduction limits?
In addition, President Obama has floated the idea of limiting some deductions claimed by upper income tax payers. For example, the administration has suggested limiting the value of top earners' itemized deductions to 28 percent.

Even though they would be paying 39.6 cents of every taxable dollar in taxes, deductions would only save 28 percent of every taxable dollar. At the same time the Administration has also suggested limiting the value of the current mortgage interest deduction.

Should you be worried about that? Probably not, at least not right away. Those changes would require action by Congress, which is unlikely in an election year, if at all. Also, the impact falls only on those in the top tax bracket.

Are there any taxes you should plan for in the short term? Yes, if you're a high wage earner. The just-passed health-care bill contained a couple of increases in Medicare payroll taxes for higher-income taxpayers. Analysts at Deloitte say those provisions would cost about $2,250 for a family with income of $500,000.

For retirees, the Medicare Part B premium, which is deducted from Social Security checks, has gone up. The cost this year is $2,652 for a married couple, up almost 17 percent from the $2,270 cost last year. Those in the upper income brackets will pay even more.

If you retired this year, don't forget you'll be taxed on 85 percent of your Social Security benefits. You will likely need to make quarterly estimated payments to avoid owing additional taxes, and possibly penalties, at the end of the year.

Roth conversions
One of the biggest tax changes of 2010 is the ability of all income groups to have a Roth Individual Retirement Account. In the past, upper income groups could not participate.

The difference in a Roth and traditional IRA is simple. In a traditional IRA, contributions are tax deductible each year, the money grows without a yearly tax event, and the account holder then pays taxes as she withdrawals the money.

With a Roth account, the contributions are not tax deductible but withdrawals are. This is a significant advantage if you expect to remain in a high tax bracket during much of your retirement years. However, to convert a traditional IRA to a Roth, the account holder must pay taxes on the current value of the account, which can be a significant hit.

The Estate Tax was repealed for 2010, meaning there is no tax this year on any sized estate. However, the tax is scheduled to return next year, taxing any estate over $1 million in value. The tax rate would also go up significantly. Congress is expected to take action before that happens and may set the limit a bit higher.

In 2007, federal, state and local taxes claimed about $3.8 trillion, or 27 percent of U.S. gross domestic product, according to the non-partisan Tax Policy Center. That's nearly $13,000 for every American. Two-thirds of tax revenues went to the federal government.

It may sound like a lot, but taxpayers in other developed countries pay even more. In 2006, taxes in 30 of the world's richest countries averaged 36 percent of GDP; only Mexico, Turkey, South Korea and Japan had tax rates lower than the US. And taxes in many European countries exceeded 40 percent of GDP because these nations offer more extensive government services than the US does.

Americans do pay far more in individual income taxes than residents of other wealthy nations. Nearly 37 percent of U.S. tax revenue came from personal income taxes in 2006, about 10 percentage points more, on average, than in other industrialized countries. But Americans pay much less in sales taxes; 17 percent of 2006 U.S. tax receipts were from taxes on goods and services, or about half the 32 percent average for rich countries.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Baby Boomers In The Role Of Caregiver

Except for the years when my father was serving in World War II, my parents were inseparable during their 54-year marriage. Then, 14 years ago, Dad died at the age of 80 of a brain tumor.

My mother, who was just 73 at the time, was pretty much self-sufficient for about a decade after that. She still played tennis, drove her car, and got together with friends and neighbors, including fellow retirees from her years as a kindergarten teacher who met monthly for lunch. After a few years, Mom had a new romantic partner as well.

Then, about four years ago, my sister and I got “the call.” It was the call to which many baby boomers who have an aging parent can relate. Who makes the call can vary. It can come in many forms -- a phone call, a letter, an e-mail, or even someone making a comment. It is that defining moment, that “wake up call” if you will, the one where you can no longer deny that your parent needs help.

Whether the call is from a physician, a sibling, a spouse or romantic partner, a friend, a neighbor or, in some cases, from the police or even the fire department, it is that call that distinguishes the moment when you go from being an adult child to someone who will now have to be the parent to your parent.

Giving Up the Car
For many of us, the first big change in our parents’ independence occurs when it becomes prudent for him or her to stop driving. (See, “Seniors in More Severe Auto Crashes Than Younger Drivers” which reports on a study conducted at Kansas State that analyzed the driving patterns of those aged 65 and over.

Parents who live in an urban setting, where driving was rarely an issue, may find it has become more difficult for them to take public transportation because of diminished mobility or increased feelings of insecurity around strangers. It is often left to the Boomer to help his or her parents to get around. And that’s just the beginning.

Seek Out Help
If you find yourself becoming your parents’ caregiver, it may be useful to invest some time and money in meeting with an eldercare or geriatric manager or counselor. They can guide your parent or you through the world of senior care that you and your parent or parents are now entering.

Linda A. Ziac, president of the Caregiver Resource Center, has been working in the eldercare field for 35 years. She emphasizes that “no two situations are the same.” Ziac gets calls from adult children who are trying to get things in place but their parent refuses to talk about it, as well as “calls from seniors from 60 to 90 saying that they want to explore help for themselves.”

You can find a local eldercare manager or counselor the same way you would find any trusted professional: ask friends, your own physician, or senior services in your own or your parents’ community for referrals. Then perform due diligence checking out their credentials, testimonials, or websites. Usually there is an initial consultation for a fee and if additional services are requested, you would negotiate with the eldercare specialist what assistance will be needed and what it will cost.

Becoming Your Parents’ Advocate
One of the best gifts you can give to your aging parent or parents is to become their advocate. This is especially important if a parent starts to have a diminished capacity and can no longer deal with such everyday activities as walking, feeding or dressing oneself, making phone calls, or cooking.

As eldercare counselor Ziac points out, there is a big difference between being your parents’ advocate and helping and taking over in a way that makes the parent feel worse. Ziac says, “There has to be a conversation between the senior and the family to honor the wishes of the senior. They can’t just come in and dictate what the right thing is to do.”

Even if the final decision about what your parent wants to do is up to him or her, you can still help by doing some research. For example, if your parent has vision challenges such as macular degeneration, you can explore if there are free services for the visually impaired in your community. Volunteers may be available to read to your parent on a regular basis for one to two hours a week.

As long as your parent is still self-sufficient and able to get to the programs and participate in activities, or has a caregiver to help out as needed, you can explore senior centers in your parents’ community to see what she or he might want to participate in.

Getting a Geriatric Assessment
If you suspect that your parent has Alzheimer’s or another kind of dementia, you might want to get a detailed geriatric assessment through a hospital or a neurologist. This will give you a starting point of how your parent is currently functioning as well as suggestions about what medical or social services your parent would benefit from. One such program is run by the Center for Healthy Aging at Greenwich Hospital in Greenwich, Connecticut.

The assessment is conducted by the Geriatric Health Team which consists of a geriatrician, who is a physician, board certified in geriatric medicine, a geriatric nurse practitioner, a pharmacist, a gerontologist, and a social services liaison. (Your parent would first be seen and evaluated by an internist who would make the determination that your parent should be referred to a neurologist or geriatric assessment center.)

Housing and Caregiver Considerations
Author Mike Campbell has spent more than 18 years in the senior housing and care industry including visiting hundreds of nursing homes or assistant living residences on behalf of his former employers. He also comes to this topic from a personal perspective. Campbell and his siblings, all of whom live in Ohio, and his mother, who is 81 and living in Florida, are deciding where she should live since her second husband died. (Campbell’s father died suddenly at age 57 of a heart attack.)

In his book, When Mom and Dad Need Help, Campbell identifies nine basic housing options that seniors and their Boomer children need to consider:

(1) parents moving in and living with you;
(2) adult day services, a community-based option, with your parent still living in their same home;
(3) home care services, while still in the same home;
(4) moving to an independent community with supportive services;
(5) assisted living communities;
(6) stand-alone Alzheimer’s dementia communities;
(7) nursing care facilities;
(8) Continuing Care Retirement Communities (CCRCs)which offer all of these levels of care on one single campus; and
(9) hospice, the final option.

Campbell says there are pluses and minuses for each option. One concern is cost but another key factor is the staff. According to Campbell, “You want to have “adequate staff and adequate training.”

In assisted living and nursing care residences, the recommended maximum staff to resident ratio varies depending upon the shift. For the morning (7 a.m. to 3 p.m.) shift, Campbell suggests that the maximum assisted living ratio should be 10 residents to one direct care staff. In a nursing home, Campbell’s maximum recommended ratio is 5 direct care staff to one resident.

In addition to finding out the staffing ratio, you and your parent will also want to tour any residences that your parent is considering. Here are some questions you want answered:

• What is the ambiance of the residence?
• Are activity rooms in use?
• What is the dining area like?
• Is the food up to the standards that you and your parent were expecting?
• What will this residential option cost?
• Are there any additional fees beyond the daily room rate and meal charges that you should know about such as charges for various types of assistance, from administering medications to escorting to meals or activities, as well as any one-time or recurring activity fees?
• How long is the lease and what, if anything is the obligation for payment of the monthly rent if there is an extended hospitalization or death that requires breaking the lease?
• How friendly are the staff and fellow residents?
• Is there an emergency system in place if your parent falls and can’t get to the phone such as pull cords in the apartments that connect to the front desk or to 911?

Legal Issues
Hopefully your parents will have already taken care of the major legal issues such as having an irrevocable or revocable trust, a will, a durable power of attorney, and a health care directive. (See “A Legal Wake Up Call for Boomers” for a discussion of these key legal concerns.) You should look at these legal and estate issues from your parents’ perspective. It may be helpful to consult with the family attorney or an elder care attorney on these matters.

As Carolyn L. Rosenblatt, who was a nurse for 10 years, a lawyer for 30 years, and who is now an elder care advisor and author of The Boomer’s Guide to Aging Parents, says, “Everyone needs to have a durable power of attorney for finances and a health care directive for health.”

Everyone Ages Differently, On Their Own Timetable
At the assisted living residence where Mom now lives, there is a petite healthy woman who is 103 years old. Everyone points to that woman as a role model of aging. On the one hand, it is very comforting to know that someone could be 103 and still be in excellent shape, walking on her own, and needing minimal assistance with everyday self-care.

But, on the other hand, it is a false standard by which all others are compared. For one thing I have learned most about aging is that there is a very wide disparity in how or when someone loses their mobility, develops dementia, suffers from chronic pain, arthritis, or contracts life threatening diseases like heart disease or cancer. Therefore, it’s important to keep the focus on the abilities and challenges of each senior rather than making him or her feel unfairly compared to someone else who seems to be faring much better even at a more advanced chronological age.

I have also learned that seniors deal with the changes they are going through in unique ways. Some become very angry and resentful, looking back at the way things were; others are accepting and positive. Excessive and ongoing depression and sadness in seniors, however, is not necessarily a normal part of aging; it is treatable. If your parent is showing signs of chronic depression, seek out a geriatric social worker or counselor, psychologist, or psychiatrist for help. (See “Depression Not a Normal Part of Aging” by Fred Cicetti).

Meeting Your Aging Parents’ New Relationships
As your parents’ life changes, they may also be forming new friendships or even romantic relationships, which may be an adjustment for you. For example, 49-year-old Brenda, whose mother died suddenly in 2008 after 51 years of marriage, said it was a challenge dealing with a new stepmother for her and her siblings.

“It wasn’t a few weeks before my father was looking for a new wife,” said Brenda, “and he was quite open about his desires, even before my mother’s funeral. He did not want to be alone and he was going to make sure that was not the case for the rest of his life. Within five months, he was online dating, and he quickly found someone who looked exactly like my mother. It was comforting and disturbing all at the same time. Within 17 months, he was remarried. All has gone well with the marriage, however a couple of my siblings have had great difficulty with the transition to having a stepmother.”

Health Care Issues
Coping with the myriad of healthcare issues is a large part of the aging process and can take a lot of time and attention. Although some parents will be fit and self-sufficient even into their 90s or beyond, others will have one or more health concerns that require your time.

With the advancement in medicine today, conditions that seemed a part of aging that just had to be endured are now treatable even if not curable. For example, there are medications that internists can prescribe for incontinence; urologists may even have additional treatment suggestions including surgical procedures, to minimize or eliminate this as a health care issue. Research advances in treating any number of age-related health care problems, such as macular degeneration, dementia, arthritis, depression, or hearing loss. You may also want to find local or even out-of-state experts who can help.

How Are They Going to Pay?
As elder care advisor and lawyer Rosenblatt points out, “One of the biggest problems we have as Boomers is that many parents did not plan on living this long and have outlived their money.” That leaves the question, how is your parent going to pay for their care?

You may want to hire an elder care attorney or specialist with whom you can have a family meeting to weigh the various options. If your parents got long term care insurance in their 50s or 60s, that is one possible option; if they are already in their 70s or 80s or older, it is probably too late to buy such insurance. Since your parents are over 65, they will have Medicare, but Medicare may not pick up all the healthcare expenses.

Your parent might want to look into the feasibility of buying “gap” insurance which covers some or all of the difference between what healthcare costs are reimbursed by Medicare and the actual costs. (Because of the recently-passed health care reform bill, you may want to check with an elder care expert about what is changing for senior healthcare.)

If your parent needs to go into a nursing home, or if you need a nurse to care for your parent in his or her home, you might want to find out if your parent is eligible for Medicaid to cover some or all of the costs. Since this is an extensive requirement and application process that varies from state to state, you might want to hire an elder care attorney to help your parent with this.

Acceptance and Perspective
Recently I asked my mother, who now needs continual care since she has mobility, vision, and memory issues, if her situation is hard on her. “No,” she answered, much to my surprise. “That’s good to hear,” I replied with relief. Then she continued, with absolute clarity and certainty, “It makes me feel loved.”

I learned so much in that exchange with my mother. I was looking at her situation as an outsider rather than as the one who has resigned herself to the walking and memory challenges that are part of my mother’s new world. I also did not understand that she views her situation from a very different perspective than I do. I am a “young” 61-year-old. My mother’s world is now mostly made up of other seniors with physical and mental challenges of their own who are in their 70s, 80s, 90s, and beyond.

Caring For Ourselves
We Boomers also have to remember that it’s okay to turn to other family members, romantic partners, friends, or even local support groups if we need help in our caregiver role. (See “Managing the Stress: Tips for the Caregiver” at the AARP website.

It Will Never Happen To Me!
I try hard to make time for Mom by visiting her regularly and calling often. I like to think that I won’t be so dependent on my children when I am that age. Not me! I jokingly tell my sons, who are now ages 20 and 24, that when their father and I are in our late 80s, we’ll be traveling around the world in a hot air balloon, joyfully independent and healthy.

However, deep down inside I can hear a little voice telling me that my mother and every other senior dealing with the tough physical and mental challenges of growing old probably had that same dream and hope when they were my age. It is a reminder to live our dreams as fully as possible while we still can because aging and all that entails is happening to all of us.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Reverse Mortgages: Very Informative Article

By TARA SIEGEL BERNARD
Originally appeared April 16, 2010
Do Price Cuts Make Reverse Mortgages More Attractive?

Reverse mortgages, which allow older homeowners to pull cash out of their homes without making payments, have been around for decades. They are often used by people who want to stay in their homes, but need extra money to pay medical bills, for instance, or to retire other debt.

Reverse mortgages also have a reputation for being expensive, and they are. But if you’ve been thinking about one, it’s worth taking a closer look now because several lenders have cut prices in recent weeks. As with most complex financial products, however, you need to know exactly what you’re getting into.

Bank of America, Wells Fargo, MetLife Bank and Financial Freedom have all waived their origination fees and other charges on certain reverse mortgages they sell as part of the Federal Housing Administration’s Home Equity Conversion program. There’s a reason for the lower prices: Lenders are making profits by packaging the loans as securities and selling them to Wall Street investors. Demand for the securities is high, experts said, because not only are the underlying mortgages backed by the government, but they also tend to be more predictable, with slightly longer lives than traditional mortgages.

Consumers were becoming increasingly reluctant to sign up for reverse mortgages — after all, homeowners could not pull out as much equity as they once could because of the drop in home values. But when the F.H.A. also reduced the amount that people could borrow, even fewer took out loans.

The potential market is huge. More than seven million people over the age of 65 with annual incomes below $30,000 own their homes outright, according to the Census Bureau’s American Housing Survey conducted in 2007, the most recent data available.

But just because the initial price of a reverse mortgage has dropped doesn’t mean the mortgages are necessarily a good deal for everyone. Much of borrowers’ home equity will be erased over time, perhaps more quickly than they realize. As the name implies, these are mortgages in reverse. Because the borrower isn’t making any payments, interest and fees are added to the loan balance.

The upside? Because eligibility is largely based on the property value, borrowers aren’t subject to the income and credit requirements that they would be with a home equity loan or line of credit. And borrowers can remain in the home indefinitely, as long as they can still pay the property taxes and homeowners’ insurance. When borrowers are ready to sell (or when they die), the bank takes its share of the proceeds from the sale, and borrowers or their heirs receive whatever is left.

While a reverse mortgage may seem enticing, you need to consider the long-term costs and consequences. You could, for instance, be disqualified from other federal or state-run aid programs. And mortgages with the seemingly most attractive pricing — namely, fixed-rate reverse mortgages — may not necessarily be the best choice because they require you to immediately withdraw all the equity you are eligible for in a lump sum, and the interest begins accruing on the entire amount right away.

“Is this a good thing? Yes, but with some caveats,” said Barbara Stucki, vice president of home equity initiatives for the National Council on Aging, a nonprofit advocacy organization. “The challenge for people is not to be swayed by the cuts in fees, but to look carefully at the product they are considering.”

So before you — or your relatives — are drawn by the advertisements on television or in their mailbox, be sure to consider the following:

THE BASICS The vast majority of reverse mortgages are made through the F.H.A.’s Home Equity Conversion Mortgage program (known in the business as HECM, pronounced HECK-um), which has several built-in consumer protections, like limits on fees and mandatory counseling for all borrowers. To qualify, you must be at least 62 years old, own the property outright (or have a small mortgage balance) and live in the home.

The amount you’re eligible to receive depends on the age of the youngest borrower, the home’s appraised value and the interest rate (the most you can receive is capped at $625,500 for 2010). The older you are, the higher the home value and the lower the interest rate, the more money you can withdraw. So a 62-year-old who owns a $350,000 home outright would be able to withdraw about $184,000, based on a 5.63 percent interest rate, though the amount would be reduced by the monthly servicing fees and closing costs. A 72-year-old would be eligible for about $211,000, excluding the other costs.

You can choose to receive that money in a variety of ways — a lump sum, installments or a line of credit, which allows you to withdraw the money when you need it, much as you would with a home equity credit line. (This may be the wisest choice for many borrowers.) Fixed rates are more readily available on the lump sum products, while credit lines carry adjustable rates. Borrowers can also combine options and change them at any time for a nominal fee.

THE COSTS Reverse mortgages are expensive. But it’s not unlike paying for a traditional mortgage that requires private mortgage insurance. These are the costs: a lender can charge an origination fee of 2 percent of the first $200,000 of your home’s value, plus another 1 percent for amounts over that, though the total is limited to $6,000. You may also owe a monthly servicing charge of up to $35, which is added to your loan balance each month, as well as traditional closing costs.

Borrowers must also pay an upfront mortgage insurance premium of 2 percent of the home’s value and a monthly insurance premium equal to 0.5 percent of the mortgage balance. The reason for all the insurance? It protects the seller from owing more than the property is worth when it’s sold and ensures that the borrower will still be paid should the lender go under.

Because the HECM program is regulated by the Department of Housing and Urban Development, it’s harder for lenders “to sneak in any extra fees,” said Sue Hunt, reverse mortgage program manager at Consumer Credit Counseling Services in Atlanta. “It’s a pretty straightforward proposition.” How does it all add up? Take a 67-year-old with a $370,000 home who withdraws a lump sum of nearly $200,000 (at a 5.65 percent fixed rate). The initial costs at closing could easily reach $16,563, according to ReverseVision, a reverse mortgage software company. (In addition, another $5,518 in servicing fees — to cover those $35 monthly fees over the estimated life of the loan — would be set aside.) Over time, don’t forget, interest and other costs are accruing on the mortgage. If the borrower dies at age 80, and his home is worth $720,700 at the time, his heirs would be left with just $100,000. And the bank will have pocketed about $364,000 in interest.

What’s happening now, however, is that many firms are waiving the origination and servicing fees on some or all of their products. So the same borrower would receive nearly $11,000 more cash at closing. Most of these costs can generally be wrapped into the financing.

THE CAVEATS Given the upfront costs, a reverse mortgage may not make sense if you plan on moving in a couple of years. And if you stay in the home for a long time (or until you die), your heirs may receive little, if anything. Some experts suggested talking with your children — perhaps they want to help you now to preserve their inheritance later. Or “you may want to do something very different and sell your home and move to a smaller one,” said David Certner, legislative policy director at AARP.

If a married couple is living in the home, both need to be listed on the mortgage. If only one spouse is named, and that one dies, the surviving spouse will be required to sell the home under a reverse mortgage.

You also want to be sure that receiving the lump sum won’t make you ineligible for other programs. The National Association of Area Agencies on Aging, Benefitscheckup.org and Eldercare.gov Web sites can help you find out if you qualify for other aid.

PROVIDERS Some lenders’ advertisements create a misleading sense of urgency. Don’t fall for claims that you must respond by a certain date, and find another provider if you’re pressured to invest your proceeds in another expensive product, like deferred variable annuities.

Start by reading everything you can on the topic. Then call a housing counselor certified by H.U.D. (for a list, call 800-569-4287). The counselors can help analyze your situation in person or over the phone.

Shopping for a provider is important because unscrupulous lenders have misled consumers in the past. Once you’ve located a few lenders, look for complaints on the Web and see if the lenders are on the watch lists of your state attorney general’s office or Better Business Bureau. If you’re not financially savvy, ask a trusted friend or independent adviser for a second opinion.

After all, reverse mortgages are more attractive at these prices, but they shouldn’t necessarily be your first choice.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

You Can't Always Avoid Probate

The Realities of Probate

The idea of having your will or estate go through "probate" conjures up visions of money that should have gone to your heirs being peeled off and divided up for the state's administrative services in seeing to your last wishes. In addition, the process of probating a will or estate can be a lengthy one, particularly trying for a spouse or children who have to wait until it is finished to gain clear title to a home or access to bank accounts.

Consequently, attorneys and financial planners often encourage people to structure their estates in ways that will avoid probate. That may or may not be beneficial, given that probate court systems in many states have been restructured in recent years and there are only certain types of assets that aren't required to be probated.

What is probate and how does it work? There are actually two facets to the process commonly referred to as "probate". When a person dies, his/her will must go through a formal process of being finalized. The probate court, depending on the state, determines that the will is your last statement confirming the disposition of your estate and officially appoints the person or business that you have already chosen to administer the will (your executor). In cases where a person dies intestate (without a will), the state court may appoint an estate executor, generally an attorney or agency that specializes in such matters.

In addition to the formalities, the term probate is also applied to the whole process of gathering and paying any final bills and taxes that are filed against the estate, as well as distributing the remaining assets to the heirs. The executor is supervised, or at least reports to, the court, and may come under close scrutiny by the will's beneficiaries. Because the executor performs a number of tasks that can be technically difficult and time consuming, he/she is also entitled to be paid a reasonable amount for services rendered. The actual amount of compensation may be provided for in the will, or could be a percentage established by the particular state's probate laws. In either case, it does constitute a certain portion of a person's net assets that subtracts from the amount eventually dispensed to the heir(s).

There are certain assets that are exempt from probate. Those include life insurance or retirement plans that pass to a specific, previously named beneficiary and real estate held jointly by the deceased and the beneficiary. In addition, bank accounts or brokerage accounts that are jointly held and which specify the right of survivorship do not have to be probated.

A living trust, which passes property to your heirs prior to your death is often marketed as a way to avoid probate. However, that assertion may not be entirely true. It is only rarely that some part of a living trust does not have to go through probate, despite the original intentions. Any property that has not been transferred to others prior to your death is generally willed to the trust itself, then transferred to the heirs via a trustee who very probably charges fees, after he or she pays any outstanding taxes from the estate. It is the very process of settling those same taxes and administrative details that can delay and extend the process of probate. Thus, depending on the state where the property is being dispersed and the extent of the estate, the actual time frame and cost of probate can potentially be less than those involved in the distribution of a living trust.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Two Important FREE Booklets for All Seniors

"End of Life: Helping With Comfort and Care" is a publication of the National Institute on Aging (NIA). This booklet discusses the issues commonly faced by people who are caring for a loved one nearing the end of life. It is filled with information and suggestions based upon research conducted by the NIA. It is a booklet that accurately explains end-of life care so that people making care decisions will have the knowledge to support the best quality of life for their loved one.


"The 4 Steps of Long Term Care Planning" is a comprehensive guide that provides information about long term care plans that will fit your lifestyle and budget. This publication will help you learn more about the steps of long term care planning:
1. Understanding care options, settings and programs
2. Funding the costs of long term care
3. Using long term care professionals
4. Creating your personal care plan and choosing a care coordinator

These free booklets can be ordered at the Web site www.wrpioneers.org

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

DON'T fall for this scam

Police Departments became aware of a scam targeting senior citizens and Medicare recipients.

The scam involves a caller claiming to be from the Medicare office stating that there has been a glitch in their computer system. The caller states that the recipients need to re-verify their card information which is the recipient's Social Security number ending in a letter. The callers are also asking recipients to verify their bank routing numbers.

By no means should any individual give this information out over the phone, say local law enforcement officials. Suspects can use this information to open accounts or access bank records.

Remember that any caller asking for Social Security numbers, bank routing numbers, full names and dates of birth are likely to be scams or attempts at identity theft. If you've experienced this scam or feel that you have been a victim of a scam please call your local law enforcement agency immediately.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Free Booklet: Fight Identity Theft & More

March 10, 2010

The elderly are among the first targets of scam artists. Illinois Attorney General Lisa Madigan is using National Consumer Protection Week this week to offer guides on how to avoid becoming a victim.

• The guide, "Every Cent Counts -- for Senior Citizens," offers information about credit and debt problems, difficulty paying a mortgage and how to combat identity theft. Get it at IllinoisAttorneyGeneral.gov or by calling (800) 386-5438 to request a copy by mail.


For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Not Every Nursing Home is Safe !!!

Tulsa, OK: Last month the New York Times published an in-depth exposé of elder abuse at many US care facilities. The story prompted the Senate Finance Committee to launch an investigation into patient deaths and allegations of substandard treatment.
According to the New York Times report, the Senate investigation will focus on Select Medical Corporation, which operates 89 long-term for-profit care hospitals across the US and boasts more facilities than any other company.

The Times detailed an incident that allegedly occurred at a Select facility in Kansas, in which a dying patient's heart alarm sounded for more than an hour before help arrived. By the time nursing staff finally responded, the patient had been in distress for 77 minutes.

On March 8, Senators Max Baucus (D-Montana, the committee’s chairman) and Charles E. Grassley (R-Iowa), the panel's senior Republican, demanded that Select provide more information about the allegations. Select Medical indicates it would cooperate fully with the inquiry, although a spokeswoman claimed that Select viewed the Times article as misleading and inaccurate.

Other complaints lodged against Select and subject to investigation come from former employees of the company, who have detailed a discharge policy that seems to put profit ahead of patient well-being.

Under Medicare rules, hospitals that treat patients for 25 days or longer earn higher Medicare payments. Former Select employees allege that the company presses to keep patients for 25 days, then tries to discharge them almost immediately in an effort to maximize profitability. At some Select hospitals, the New York Times reported, the twenty-fifth day is known as the "magic day."

In a lawsuit concerning the death of 79-year-old Ruth Tanner, a patient in a Select hospital in Tulsa, Oklahoma, a doctor provided a deposition claiming that nurses at the facility injected the "relatively-healthy" Tanner with 10 times the appropriate level of insulin, then waited 90 minutes after the woman had slipped into a coma before notifying her doctor. Tanner never regained consciousness, according to medical records and the lawsuit. She died in early 2009, a month after the incident.

The owners of Select have earned $400 million since founding the company in 1996. Recent company announcements revealed that profit margins had risen 19 percent in 2009, compared to 16 percent the year before. Cash flow increased by $54 million.

The Government Accountability Office has been asked to examine federal and state oversight of all long-term care hospitals.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

How safe is it for me to make my own legal will online?

Most people with moderate estates can make a will online. In some ways, making a will online is very similar to estate planning with the help of a lawyer. You simply answer interview questions tailored to your situation, get answers to your legal concerns, and in the end receive a legal document tailored to the laws of your state - just like you would with a lawyer. Your main task will then be to sign the document and have it witnessed. Of course, an online will costs a lot less and takes much less time than going to a lawyer, and you don't have to leave your home or office to do it.

Is it safe to make a will without a lawyer?

Yes.

Making a will rarely involves complicated legal rules, and most people with simple estates won't need a lawyer to make a will.
However, there are certainly some situations that warrant hiring a lawyer. When you make your will online, if a situation arises in which you may benefit from the advice of a lawyer or other expert, the computer program will let you know.

Is your information safe when you make a will online?

Yes.
Security issues are the highest priority so do take every precaution

Can you assign a guardian for your child in your will?

Yes.

A will is the right place to name someone to care for your children if you are unable to.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

The AARP Helps Seniors with their Tax Returns !!

Senior Solutions presents Tax Aide a free, volunteer-run tax assistance and preparation service. It is available to taxpayers with low and moderate incomes and gives special attention to people age 60 and older. Trained in cooperation with the Internal Revenue Service, volunteers help more than 2.6 million taxpayers file federal, state and local tax returns each year. The program is offered nationwide in senior centers, libraries, community centers and other convenient locations.

Volunteers are trained to assist with filing the 1040 Form and standard schedules, including Schedules A and B. Taxpayers with complex tax returns are advised to seek paid tax assistance. Electronic filing (e-filing) is offered at most sites, with no charge to the taxpayer. E-filing ensures more accurate tax returns and faster processing of tax refunds.

Tax Aide also allows taxpayers to pose questions online, year-round, 24 hours a day, seven days aweek, from the comfort of home. To learn more, just click HERE or visit the general AARP site HERE

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524