As elder law attorneys, we find that the most pressing matters that we deal with are impacted by Alzheimer’s disease. Though it is a disconcerting prospect, you should be aware of this looming threat when you are making preparations for the future.
Deadly and Surprisingly Common
Everyone has heard of Alzheimer’s, but a lot of people are very surprised when they find out how widespread it has become. Over 30 percent of elders that are 85 years of age and older have Alzheimer’s, and your life expectancy is into the mid-80s once you reach the age of 67.
In all, there are at least six million people with Alzheimer’s disease in the United States at the time of this writing. Since the baby boomer generation is attaining senior citizen status, the population is aging, and this is fueling an increasing number of cases.
By 2050, experts expect the six million figure to grow to 13 million unless there is some type of medical breakthrough in the meantime.
We all know that Alzheimer’s causes dementia, but a lot of people do not understand its deadly nature. It kills more people than prostate cancer and breast cancer combined, and it is the sixth leading cause of death in the United States.
Impact on Families
Loved ones are usually going to step up to the plate to provide assistance for family members that have Alzheimer’s. According to the Alzheimer’s Association, there are over 11 million people providing unpaid care for Alzheimer’s patients at the present time.
Caregiving can be time-consuming and physically demanding, and of course, it is emotionally difficult to watch a parent, or another loved one, deteriorate. There can also be a financial burden, so this disease is very hard on all of the people that are affected.
Incapacity Planning
Alzheimer’s disease is not the only cause of dementia, and some people become unable to communicate sound decisions late in their lives because of purely physical conditions. To account for possible incapacity, you should execute certain documents.
You can state your life support preferences in a living will, and you can add organ and tissue donation choices. To account for scenarios that call for medical decisions that are not related to life-support, you can name a representative in a durable power of attorney for health care.
A provision that is contained within the Health Insurance Portability and Accountability Act (HIPAA) prevents doctors from sharing medical information with anyone other than the patient. Your plan should include a HIPAA release to give the agent access to your medical information.
On the financial side of things, if you have a living trust, you would act as the trustee while you are alive and well. When you are drawing up the trust agreement, you can designate a disability trustee to assume the role in the event of your incapacity.
To account for property that is not held by a trust, you can name an agent to make decisions on your behalf in a durable power of attorney for property.
Nursing Home Care
At some point, the level care that is needed can exceed the capabilities of family members and friends. Nursing home care can be the only option, and these facilities are extremely expensive.
Medicaid is another government health insurance program that will pay for long-term care, but there is a $1600 limit on countable assets in Connecticut.
The good news is that there are some assets that don’t count, including a home. To develop a financial profile that will lead to eligibility, an irrevocable, income only Medicaid trust can be created and funded.
As the name would indicate, the grantor of the trust would be able to accept distributions of income that is generated by the trust’s assets, but they would have no access to the principal. The trust would be administered by a trustee that is designated when the trust is established.
As long as the trust is funded at least five years before the application for Medicaid eligibility is submitted, the assets in the trust would not count.
Schedule a Consultation Today!
We are here to help if you are ready to work with a Glastonbury or Westport, CT elder law attorney to put a plan in place. You can send us a message to request a consultation appointment, and we can be reached by phone at 860-548-1000.
Mr. McCann is licensed to practice before the courts of the State of Connecticut. He is a member of the American Academy of Estate Planning Attorneys.
Mr. McCann provides to his clients, trust and estate planning, and trust and estate administration services. Formerly, Mr. McCann was an adjunct professor of economics in the State of Connecticut Community College system, and a Commissioner of the Town of Simsbury Zoning Board of Appeals.
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