To be a free resource for Baby Boomers and Senior Citizens regarding Medicare, Medicaid, Medigap policies, Discounts for Senior Citizens and other essential information for independent living.
The Americans with Disabilities Act of 1990 (ADA) was signed into law on July 26, 1990, by President George H. W. Bush, and later amended with changes effective January 1, 2009. The ADA is a wide-ranging civil rights law that prohibits, under certain circumstances, discrimination based on disability. It affords similar protections against discrimination to Americans with disabilities as the Civil Rights Act of 1964, which made discrimination based on race, religion, sex, national origin, and other characteristics illegal. Disability is defined as "a physical or mental impairment that substantially limits a major life activity." The determination of whether any particular condition is considered a disability is made on a case by case basis. Certain specific conditions are excluded as disabilities, such as current substance abuse and visual impairment which is correctable by prescription lenses.
On September 25, 2008, President George W. Bush signed into law the The ADA Amendments Act of 2008 (ADAAA). It is intended to give broader protections for disabled workers and "turn back the clock" on court rulings which Congress deemed too restrictive. The ADAAA includes a list of impairments to major life activities.
A Do Not Resuscitate or DNR order is a written order from a doctor that resuscitation should not be attempted if a person suffers cardiac or respiratory arrest. Such an order may be instituted on the basis of an advance directive from a person, or from someone entitled to make decisions on their behalf, such as a health care proxy; in some jurisdictions, such orders can also be instituted on the basis of a physician's own initiative, usually when resuscitation would not alter the ultimate outcome of a disease, and is designed to prevent unnecessary suffering.
Any person who does not wish to undergo lifesaving treatment in the event of cardiac or respiratory arrest can get a DNR order, although DNR is more commonly done when a person who has an inevitably fatal illness wishes to have a more natural death without painful or invasive medical procedures.
Estate planning is the process of accumulating and disposing of an estate to maximize the goals of the estate owner. The various goals of estate planning include making sure the greatest amount of the estate passes to the estate owner's intended beneficiaries, often including paying the least amount of taxes and avoiding or minimizing probate court involvement. Additional goals typically include providing for and designating guardians for minor children and planning for incapacity.
Few people relish estate planning. After all, deciding how you want your assets distributed after you die can serve as an unnerving reminder of your mortality. But there are plenty of reasons to tackle the task with some enthusiasm:
·You get to name the people to whom you wish to give your assets and know that your wishes carry the word of law.
·You can arrange it so that taxes siphon as little from your pot of gold as possible.
·And you have the satisfaction of knowing that your financial affairs are in order and that you're not bequeathing a costly administrative nightmare to your loved ones.
Your first step? Take stock of all your assets. These include your investments, retirement accounts, insurance policies, real estate, and any business interests. Next, decide what you want to achieve with those assets and who you want to inherit them. This is also the time to think about people you would trust to handle your business affairs and medical care in the event that you become incapacitated. Once you decide what kinds of bequests you wish to make, be sure to discuss your plans with your heirs. The sooner and more distinctly you outline your intentions to your family and friends, the less chance there will be for disagreements when you're gone. In creating your estate plan, keep in mind that the laws governing estate planning are not set in stone. In fact, the Tax Relief Act of 2001 made several sweeping changes that are being phased in over a 10-year period. They include:
·A gradual increase in the estate tax exemption (i.e., the amount of money you may leave heirs free from federal tax) and the eventual repeal of the estate tax;
·A reduction in the estate and gift-tax rates - the top rate will fall as low as 45 percent by 2007, down from 55 percent in 2001;
·The gradual repeal of the federal credit for estate taxes paid to a state government; and
·A revision in how the tax basis of inherited assets is calculated.
It's a complex law made more complicated because it sunsets at the end of 2010. Between now and then, Congress may pass other measures that either extend provisions in the Act or eradicate them.
What that means is estate planning has become far more complicated for people with sizeable estates, and having a trusted and competent estate-planning lawyer is essential if you wish to protect as much of your assets from Uncle Sam (and your state tax collector) as possible. Such a lawyer can create legal documents, offer advice, keep your estate plan current with new laws and help administer the disposition of assets.
1. No matter your net worth, it's important to have a basic estate plan in place.Such a plan ensures that your family and financial goals are met after you die.
2. An estate plan has several elements. They include: a will; assignment of power of attorney; and a living will or healthcare proxy (medical power of attorney). For some people, a trust may also make sense. When putting together a plan, you must be mindful of both federal and state laws governing estates.
3. Taking inventory of your assets is a good place to start. Your assets include your investments, retirement savings, insurance policies, and real estate or business interests. Ask yourself three questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you're ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself?
4. Everybody needs a will. A will tells the world exactly where you want your assets distributed when you die. It's also the best place to name guardians for your children. Dying without a will - also known as dying "intestate" - can be costly to your heirs and leaves you no say over who gets your assets. Even if you have a trust, you still need a will to take care of any holdings outside of that trust when you die.
5. Trusts aren't just for the wealthy. Trusts are legal mechanisms that let you put conditions on how and when your assets will be distributed upon your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your heirs without the cost, delay, and publicity of probate court, which administers wills. Some also offer greater protection of your assets from creditors and lawsuits.
6. Discussing your estate plans with your heirs may prevent disputes or confusion. Inheritance can be a loaded issue. By being clear about your intentions, you help dispel potential conflicts after you're gone.
7. The federal estate tax exemption - the amount you may leave to heirs free of federal tax - has been rising gradually and will hit $3.5 million in 2009. Meanwhile, the top estate tax rate is coming down. The estate tax is scheduled to phase out completely by 2010, but only for a year. Unless Congress passes new laws between now and then, the tax will be reinstated in 2011 and you will only be allowed to leave your heirs $1 million tax-free at that time.
8. You may leave an unlimited amount of money to your spouse tax-free, but this isn't always the best tactic. By leaving all your assets to your spouse, you don't use your estate tax exemption and instead increase your surviving spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies. Plus, it defers the tough decisions about the distribution of your assets until your spouse's death.
9. There are two easy ways to give gifts tax-free and reduce your estate. You may give up to $12,000 a year to an individual (or $24,000 if you're married and giving the gift with your spouse). You may also pay an unlimited amount of medical and education bills for someone if you pay the expenses directly to the institutions where they were incurred.
10. There are ways to give charitable gifts that keep on giving. If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die
A guardian is a Court-appointed individual who is empowered by the Court in situations where your capacity to make and communicate decisions becomes partially or totally impaired. These powers may include:
Your general care, custody and maintenance
Handling your financial affairs
Designating the place where you live-Providing required consents or approvals on your behalf
A Court will issue an order to appoint a guardian where a petitioner has begun incompetency proceedings against you and has proven that your capacity to make and communicate decisions has become partially or totally impaired.
Any person interested in your welfare may petition for guardianship. The Court may appoint the petitioner as guardian. It may appoint a person that you may not have wanted at all. If there is considerable property, the Court may not appoint a family member as guardian but may choose a stranger, often an attorney.
The best way to avoid the expensive and often difficult remedy of guardianship is to make a properly-executed financial or medical power of attorney and/or living will.
A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust.
A "living trust" is simply a trust you create while you're alive, rather than one that is created at your death.
Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.
A living will -- also called an "advance health care directive" -- is a legally valid document which states and explains your preferences about what kind of medical treatment you do and do not want to receive if you should become permanently unconscious or terminally ill and cannot speak for yourself.
A living will (also known as an advance medical directive) is a statement of your wishes for the kind of life-sustaining medical intervention you want, or don't want, in the event that you become terminally ill and unable to communicate.
Most states have living will statutes that define when a living will goes into effect (for example, when a person has less than six months to live). State law may also restrict the medical interventions to which such directives apply.
Your condition and the terms of your directive also will be subject to interpretation. Different institutions and doctors may come to different conclusions.
As a result, in some instances a living will may not be followed. Nevertheless, a patient's wishes are taken very seriously, and an advance medical directive is one of the best ways to have a say in your medical care when you can't express yourself otherwise.
You increase your chances of enforcing your directive when you have a healthcare agent advocating on your behalf.
You can name such an agent by way of a healthcare proxy, or by assigning what's called a medical power of attorney. You sign a legal document in which you name someone you trust to make medical decisions on your behalf in the event that you can't do so for yourself.
A healthcare proxy applies to all instances when you're incapacitated, not just if you're terminally ill.
Choose your healthcare agent carefully. That person should be able to do three key things: understand important medical information regarding your treatment, handle the stress of making tough decisions, and keep your best interests and wishes in mind when making those decisions.
There is a checklist in your living will indicating specific treatments you may accept or reject. You may also appoint a "surrogate" -- someone to act for you and ensure that your wishes are carried out. Finally, you can indicate whether you wish to be an organ donor upon your death.
A power of attorney is a document in which you, the grantor, designate another person to act on your own behalf, either now or when you become incapacitated. The person granting the powers is called the "principal," and the person who is given the powers is called the "agent" (previously known as the “attorney-in-fact”).
·The power to make decisions about health care, hospitalization and institutionalization
·The power to authorize your admission to a medical, nursing, residential or other facility
·The power to refuse or accept treatment on your behalf
Economic Issues:
·The power to write checks and pay bills
·The power to apply for benefits; buy services; make gifts; initiate lawsuits; create trusts; fill out tax returns and transact all kinds of other business
A Power of Attorney can be created to become effective upon the occurrence of certain events. For example, the power may only become effective when you are determined to be incompetent, unconscious, or seriously ill.
A Power of Attorney can also be created for a limited amount of time only, such as a period during which you are hospitalized.
It is important to remember that you may revoke a Power of Attorney at any time, as long as you still have the capacity to do so.
A Power of Attorney is an excellent planning document because it is flexible, personal and carries great weight. Often, it can prevent the need for a drastic and expensive proceeding such as guardianship.
A Power of Attorney can and should be a document tailored to your needs and circumstances. “Form” Power of Attorney documents from a store should generally not be used.
The major disadvantage is the possibility of exploitation by the agent, which can occur if there is a lack of supervision and oversight. The wrong choice of an agent could lead to abuse of the powers. As such, you must select your agent very carefully. He or she should be someone who is trustworthy, responsible, and honest. In addition, it is essential that you carefully identify the powers you are granting, rather than giving general, unlimited powers to another. Pay attention to what actions your agent takes while you have capacity!
A will is a legal document which determines the distribution of your property after your death. Those who receive property pursuant to your will are called “Beneficiaries.” The person who is responsible for various tasks associated with administering and distributing your estate is known as the “Executor.”
Although a will is not required, it is strongly recommended for a number of reasons:
1) A will gives you personal control over the distribution of your property and an opportunity to state your wishes upon death;
2) A will can provide for contingencies if a beneficiary predeceases you or certain property no longer exists;
3) A will makes it easier for your family or loved ones to deal with your estate after your death -- at a time of grief and loss, such planning is greatly needed and appreciated;
4) A will names an executor, who will have control over filing the will, paying debts of the estate, and locating and distributing your property.
