<!DOCTYPE HTML PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"><head> <meta http-equiv="Content-Type" content="text/html; charset=UTF-16"> <title>Plachta, Murphy and Associates, P.C.</title> <link rel="stylesheet" href="pmastyle.css" type="text/css"> <style type="text/css"> <!-- .style11 { font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height:18px; text-align:justify; padding-right:20px; } .style13 {font-family: Arial, Helvetica, sans-serif; font-size: 12px; color: #555555; } .style19 {font-size: 20px; font-family: "Times New Roman", Times, serif; color: #dddddd; } .style24 {font-family: "Times New Roman", Times, serif; color: #660000; font-size: 17px;} a:link { color: #1a1f72; text-decoration:none; } a:visited { color: #1a1f72; text-decoration:none; } a:hover { color: #660000; text-decoration:none; } a:active { color: #FFFF00; } #nav a:link { font-family: Arial, Helvetica, sans-serif; font-weight: bold; font-size:11px; color: #888888; text-decoration:none; text-transform:uppercase; } #nav a:visited { font-family: Arial, Helvetica, sans-serif; font-weight: bold; font-size:11px; color: #888888; text-decoration:none; text-transform:capitalize; text-transform:uppercase; } #nav a:hover { font-family: Arial, Helvetica, sans-serif; font-weight: bold; font-size:11px; color: #000066; text-decoration:none; text-transform:capitalize; text-transform:uppercase; } .style29 {font-size: 12px; font-family: Arial, Helvetica, sans-serif;line-height:16px } .style30 {font-family: Arial, Helvetica, sans-serif; font-size: 12px; color: #555555; font-weight: bold; } --> </style> </head><body><div id="header"> <table id="nav" border="0" cellpadding="0" cellspacing="0" width="768"> <tbody><tr> <td width="481"><img src="pmalogosmall.jpg" height="91" width="323"></td> <td nowrap="nowrap" width="51"><div class="style29" style="border-right: 1px solid rgb(221, 221, 221);" align="center"><a href="http://www.pmalawpc.com/">HOME</a></div></td> <td nowrap="nowrap" width="101"><div class="style29" style="border-right: 1px solid rgb(221, 221, 221);" align="center"><a href="http://pmalawpc.com/client.html">CLIENT ALERTS </a></div></td> <td nowrap="nowrap" width="53"><div class="style29" style="border-right: 1px solid rgb(221, 221, 221);" align="center"><a href="http://pmalawpc.com/about.html">ABOUT</a></div></td> <td nowrap="nowrap" width="67"><div class="style29" style="border-right: 1px solid rgb(221, 221, 221);" align="center"><a href="http://pmalawpc.com/contact.html">CONTACT</a></div></td> <td nowrap="nowrap" width="82"><div class="style29" align="center"><a href="http://pmalawpc.com/directions.html">DIRECTIONS</a></div></td> </tr> </tbody></table> </div> <table id="body1" align="center" border="0" cellspacing="0" width="100%"> <tbody><tr> <td align="center"> <table id="section1" align="center" border="0" cellpadding="12" cellspacing="0"> <tbody><tr> <td valign="top" width="233"><img src="lobby.jpg" alt="Stock Photo" name="stock" id="stock" style="background-color: rgb(204, 204, 204);" height="233" width="269" /></td> <td valign="top" width="486"><span class="boxhead"><br> Elder Law Solutions <br> <br> </span> <div class="boxdetail">As family members age, seniors, families and caregivers have questions about Medicaid, Social Security, retirement and estate planning, and where to turn for support. Some needs are taken care of by wills, trusts, and designations of patient advocates and powers of attorney. Other situations require requests for guardianship and conservatorship. Still others lead to negotiations among family members regarding care for aging parents. <p>Elder Law Solutions can help!! call the office at 616-458-3994 to begin. As a member of the Caregiver Resource Network, the Council on Aging of Kent County, we work with other trusted advisors in the elder care community to provide a complete circle of care for you and your loved ones.</p></div></td> </tr> </tbody></table> </td> </tr> </tbody></table> <div style="width: 100%; background-image: url(&quot;Border.jpg&quot;); height: 12px; border-bottom: 1px solid rgb(187, 187, 187);"> </div> <table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"> <tbody><tr> <td align="center" bgcolor="#efefef"><table style="border-left: 1px solid rgb(204, 204, 204); border-right: 1px solid rgb(204, 204, 204);" align="center" bgcolor="#dddddd" border="0" cellpadding="15" cellspacing="0" width="800"> <tbody><tr> <td class="bodydetail" valign="top"><p class="bodyhead">Aging and the Economy </p><p>Recent economic troubles have decimated seniors usual safety nets: investments, pensions, and home equity. As a result, many families are being forced to make tough decisions about care for aging parents. </p><p>All too often, families struggle along until a health crisis occurs and financial and emotional pressures have reached a breaking point. Below, we outline two typical scenarios and discuss how starting Life-Care Planning early, with an elder law attorney, can help. </p><p class="bodyhead">Caregiving Options </p><p>No matter how children arrange family caregiving, feelings of resentment can build up. Caretaker siblings may resent siblings who  don t contribute. Siblings who take a less active role may be concerned the caretaker is blowing through their parents money. If an unemployed sibling is the caretaker, others may feel he or she  has it easy, while the caretaker is anxious about his or her financial future. Sitting down early in the process with an elder law attorney, like Brian Plachta, can help parents and siblings determine caretaker job descriptions and backup plans, methods of compensation, and frequency of communication. Talk it out before a crisis to avoid fighting it out later. </p><p class="bodyhead">Accidental Medicaid Divestment </p><p>Let's say Mom lives with one sibling and pitches in $300/month for living expenses. She does this for 3 years before applying to have Medicaid pay for nursing home care. Medicaid may see this as  divestment, and they won t pay until the family has paid back an amount equal to what Mom  gave away. A Caregiver Contract that details in writing which goods and services (at fair market value) are being rendered for Mom s money can help families avoid this situation. </p><p>For more information, see our <a href="http://www.pmalawpc.com/caregivercontract%20handout.doc">Caregiver Contract client alert </a>or contact Brian Plachta at (616) 458-3994. </p><p class="bodyhead">Aid and Attendance Pension Benefit </p><p>The Aid &amp; Attendance Pension is a benefit paid to wartime veterans or their spouses with limited income who meet the following requirements: </p><ul> <li>discharged from service under other than dishonorable conditions, AND </li><li>served 90 days or more of active duty with at least 1 day during a period of war time, AND </li><li>countable family income is below a yearly limit set by law, AND </li><li>are permanently and totally disabled, OR </li><li>are age 65 or older. </li></ul> This benefit is related to the veteran s dates of service, not the length of service or whether the veteran retired from the military. It is a needs-based benefit paid to qualifying veterans with low incomes and/or high medical costs  the current maximum annual benefit is nearly $23,400. <p>There is also a pension benefit for surviving spouses. Amounts payable to widows are not as great as veterans benefits, but can greatly assist widows who need assistance. </p><p>This is a little-known program  so little-known that many veterans never receive benefits they are entitled to under law. Contact Rick Cross at 616-458-3994 if you think you or a loved one is eligible for this pension program. </p><p class="bodyhead">Elder Law Alert: Equity Indexed Annuities </p><p>Equity Indexed Annuities (EIA) have become a popular financial planning tool, recently, because they combine the potentially higher return of the variable annuity with the relative security of a fixed annuity. </p><p>They offer a guaranteed minimum return, typically 90% of the premium paid at a 3% annual interest rate. But they are also tied to a market index (i.e., S&amp;P 500 Composite Stock Price Index) so that if the Index has a good year, that will be reflected in the EIA. If the Index has a bad year, the EIA won t lose value as dramatically as a straight stock holding would. </p><p>Sounds great so far, but there are significant caveats, especially for the elderly clients to whom these financial instruments are often sold. EIA s are long-term investments meant to be held for 10-15 years before your money is available. If you need any of that money earlier, you will pay a significant surrender fee, you may lose the index-linked interest credited to the annuity, and, depending on your age, may incur a 10% tax penalty. </p><p>Also, although EIA s are typically billed as a  safe place to invest, it is quite possible to lose money. </p><p>This may be an acceptable situation for younger investors, but for older investors who may need access to their money for nursing home care, at-home nursing care, medical bills, or even to help out an adult child or grandchild, tapping into an EIA early can make a difficult situation worse. </p><p>Both the Securities and Exchange Commission (www.sec.gov) and the Financial Industry Regulatory Agency (www.finra.org) have alerts on EIA s in their  investor sections. </p><p>Luckily, Michigan investors who have purchased an EIA and feel it was an unsuitable sale have 3 years to attempt to recover their money. If you are in this situation, call our Elder Law attorney, Brian Plachta, at (616) 458-3994. </p><p class="bodyhead">Our Team </p><p><b>Brian J. Plachta,</b> <i>Attorney,</i> with more than 20 years of experience in Estate Planning, Elder Law, and Business, Corporate, and Real Estate Law. </p><p><b>Richard J. Cross, </b><i>Government Benefits Specialist,</i> with more than 30 years of experience as a Social Security claims representative and VA eligibility service officer. </p></td> </tr> </tbody></table> </td> </tr> </tbody></table> </body></html>