Orlando Estate & Elder Law

Many Americans Lack Retirement Accounts

The stock markets might have risen to record highs this year, but few Americans own enough stock to take advantage of it.

After Republicans passed their tax reform bill, some Republicans are indicating that they might be turning to entitlement reforms next.

Markets have risen to record highs this year. It seems like Americans have more in their retirement accounts than ever before.

However, while the total amount of money in retirement accounts might be at all-time highs, that money is heavily concentrated in a small percentage of the population, as Think Advisor discusses in "Trump Asks 'How's Your  401(k)?' But Most Voters Don't Have One."

While there are different measures of how many Americans have retirement accounts and how much money most people have in those accounts, it appears that overall people are not saving enough for their own retirements.

Only about 45% percent of Americans have an employee-sponsored retirement account and only about 14% own any stocks directly. Even among those people who have retirement accounts, it appears that most of them are not putting nearly as much into them as they need to.

This could make things more difficult for Republicans to reform Social Security and Medicare. Americans might be more reliant on the programs in the future than many politicians think.

For more information about estate and retirement planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Think Advisor (Dec. 19, 2017) "Trump Asks 'How's Your  401(k)?' But Most Voters Don't Have One."

Death Coming Earlier in the U.S.

Opioid deaths, as well as rapidly rising drug deaths in U.S. may be to blame.

The age at which people will pass away is very important to some people.

Insurance companies need to know for their actuarial tables, so they know what rates they should charge. The government needs to know as well for its estimates regarding future Social Security, Medicare and Medicaid costs.

Because of the importance of knowing when people will most likely pass away, measurements have been developed to give those needing the information a general idea. Life expectancy is a well-known example.  However, there are others, including a measure called the premature death rate.

This premature death rate measures the number of years of life lost below the age of 75 per 100,000 people, as Think Advisor reports in "U.S. Premature Death Impact Climbs for Third Straight Year."

A new study has found that the U.S. is going in the wrong direction. For the third straight year, the premature death rate has risen. This means that more years are being lost prematurely per 100,000 people.

While no one can be certain just why Americans are not living as long as they did previously, this new study strongly indicates that the opioid crisis takes considerable blame as well as the rapid rise of drug deaths in the U.S.

If the study is correct about the reason for more premature deaths, then it is likely that the government will need to do more to address opioids in the near future.

For information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Think Advisor (Dec. 12, 2017) "U.S. Premature Death Impact Climbs for Third Straight Year."

Death Coming Earlier in the U.S.

Opioid deaths, as well as rapidly rising drug deaths in U.S. may be to blame.

The age at which people will pass away is very important to some people.

Insurance companies need to know for their actuarial tables, so they know what rates they should charge. The government needs to know as well for its estimates regarding future Social Security, Medicare and Medicaid costs.

Because of the importance of knowing when people will most likely pass away, measurements have been developed to give those needing the information a general idea. Life expectancy is a well-known example.  However, there are others, including a measure called the premature death rate.

This premature death rate measures the number of years of life lost below the age of 75 per 100,000 people, as Think Advisor reports in "U.S. Premature Death Impact Climbs for Third Straight Year."

A new study has found that the U.S. is going in the wrong direction. For the third straight year, the premature death rate has risen. This means that more years are being lost prematurely per 100,000 people.

While no one can be certain just why Americans are not living as long as they did previously, this new study strongly indicates that the opioid crisis takes considerable blame as well as the rapid rise of drug deaths in the U.S.

If the study is correct about the reason for more premature deaths, then it is likely that the government will need to do more to address opioids in the near future.

For information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Think Advisor (Dec. 12, 2017) "U.S. Premature Death Impact Climbs for Third Straight Year."

Less Is More For Senior's Medical Care

The American health care system is built on the more care and medicine that can be provided, the better the care. A growing movement believes that is not always true for the elderly.

As people get older, they develop more and more long term diseases and health conditions. By the time someone becomes a senior citizen, it is common to have multiple daily prescription medicines to take. There are also many procedures that doctors want to perform.

Traditionally, in the U.S., health care policies and doctors' advice for individual elderly patients has been to treat everything, to perform every possible procedure and to prescribe medication for every ailment.

A new movement seeks to change that, as Politico reports in "Senior medicine: When 'more' isn't better."

The movement was started five years ago by the American Board of Internal Medicine Foundation.  It is known as the Choosing Wisely initiative.

The idea is that too much treatment for the elderly can lead to worse health outcomes.

Seniors are more likely to suffer from bad surgical outcomes and are more likely to suffer from the debilitating side effects of prescription medications.

Therefore, instead of automatically treating everything, the group suggests individualized treatment plans that focus on the most important issues an elderly patient has and how all of their treatments interact.

Despite more than 80 medical specialty associations agreeing with the Choosing Wisely initiative, doctors are still often punished by reimbursement schemes for practicing it.

That could change,  since providing less health care would save Medicare a lot of money and that makes it a win for everyone, if less truly is better.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Politico (Sep. 27, 2017) "Senior medicine: When 'more' isn't better."

Benefit of Benefits Different For Rich and Poor

America's entitlement programs that were designed to alleviate elderly poverty, are beginning to benefit the wealthy more than the poor. That creates a challenge for lawmakers who need to change the programs to keep them solvent.

Social Security and Medicare have been extraordinarily successful in achieving their primary purpose of alleviating elderly poverty in the U.S. Since the inception of the programs, elderly poverty has decreased dramatically since they ensure that older Americans have money to live on and receive health care.

While wealthier Americans are seeing an average increase in lifespan, the least well off white Americans are, on average, beginning to live shorter lives. Financial Advisor points this out in "The Rich Are Living Longer And Taking More From Taxpayers."

The result of this trend is that wealthy Americans are receiving a disproportionate amount from the Social Security system. However, when all government benefit programs are considered, the lowest income levels and the wealthiest receive about the same overall.

The problem is that the Social Security system needs to be fixed, to make sure it remains solvent.

One way to fix it is to increase the retirement age, but that will make the problem worse. Wealthier Americans will not be affected as much as many poorer Americans who will not live to see any benefits. This will effectively make their payments into the system a tax on them for the benefit of the wealthy.

Another solution is through means-testing Social Security, but the program was designed without means-testing to make it more difficult to cut later on.

There is not an easy solution to the problem and the best result might be to improve the diminished life-expectancy of poor Americans.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (April 24, 2017) "The Rich Are Living Longer And Taking More From Taxpayers."

Long Lives Challenge Retirement Plans

On the whole, Americans are woefully unprepared for retirement. If current trends continue,  it will be an even bigger problem than you might imagine.

When it comes to Americans and retirement savings, study after study shows the same thing. The average American saved far less than experts think they will need.

There are many reasons for this situation, but the reasons for not saving are not as important as what it means for future senior citizens.

The biggest problem is that even people who think they have saved more than enough might need to evaluate their own plans and save more. This warning is provided by the New York Times in "Rethinking Retirement for Longer Lives With Fewer Safety Nets."

The biggest issue is simply that people are living longer than ever before, on average. That trend is expected to continue as medical science progresses. No one is certain just how long people will live after retirement in the future.

People who have planned to save for 20 years of retirement living might actually need to save for 30, 40 or even more years. This also creates problems for elderly safety nets.

Social Security, Medicare and Medicaid are already under financial stress because of the large number of Baby Boomers entering their retirement years. The longer people live, the more that those programs will need to pay out. Many people believe the programs will have to offer substantially fewer benefits in the future.

If you want to retire comfortably and still have an estate left for your children and grandchildren to inherit, then it is important that you review your retirement plans and make sure you really are saving enough.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (Feb. 27, 2017) "Rethinking Retirement for Longer Lives With Fewer Safety Nets."

Costs of Alzheimer's Can Unbalance Any Budget

Alzheimer's is so expensive to treat, that it presents a very real threat to both Medicaid and Medicare.

The mostly costly disease to treat is Alzheimer's.  A total of one out of every five dollars spent by Medicaid and Medicare is currently used to treat the disease.

If the costs are not brought down dramatically, the future of both programs could be in jeopardy. Why? Americans are living longer and longer, which means that more people are or will be in need of Alzheimer's treatment.

If the current trends continue, in the future one out of every three dollars spent by Medicaid and Medicare will go toward treating Alzheimer's, according to FOX News in "Could Alzheimer's really bankrupt Medicare and Medicaid."

Both programs are already extremely expensive and face financial difficulties in the future. With their present funding, they will not be able to afford a large increase in Alzheimer's diagnoses and treatments.

What does this mean?

Research into preventing and curing the disease is more important than ever.  The development of new less expensive treatment methods would also be helpful.

This is another of the many ways that an aging population could threaten the country's current institutions and practices, unless action is taken. Our programs were not designed with a substantial increase in longevity in mind.

Other issues include paying for nursing home care, the health of the Social Security system, the availability of home health aides and a cultural change brought on by people having to wait longer to receive their inheritances.

For more information about elder law estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: FOX News (March 1, 2017) "Could Alzheimer's really bankrupt Medicare and Medicaid."

You Thought Kids Cost A Lot?!

New data has revealed that it is now more costly for families to care for elderly parents than it is for them to raise children.

Everyone knows that kids are not cheap. To raise a child from infancy to high school graduation puts enormous strains on families.

New government data has recently revealed that the average family spends $234,000 to raise a child to the age of 17. While that might seem like a lot, it is nothing compared to the costs of taking care of an elderly person.

The average cost of just four years of long-term care for an elderly person is $140,000, according to Forbes in "Families Spend More To Care For Their Aging Parents Than To Raise Their Kids."

As the article points out, parents receive a lot of government support to help offset the costs of raising children. The support comes in the form of tax credits and exemptions, in some cases. Lower income families receive support in other ways, such as food stamps and free school lunches.

While there is some support for taking care of the elderly because of Social Security and Medicare, there could be a lot more. Medicaid only pays for the long-term care of elderly people who do not have assets.

Families need to be aware of the high cost of caring for the elderly, so that they can plan accordingly. Money needs to be saved to cover the potential costs.

It might also be a good idea for elder advocates to use this data to argue for more support for families who care for their elderly relatives.

For more information about elder law and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Forbes (Jan. 18, 2017) "Families Spend More To Care For Their Aging Parents Than To Raise Their Kids."

Cutting Benefits Relied On By Elderly Could Cost Lives

The facts that Social Security and Medicare will eventually run out of funds and that Republicans are now in control of the government have many elder law advocates worried that elderly entitlement programs will be reduced. That could lead to unintended consequences.

One of the major causes of suicide in the United States is worry over financial troubles. When people do not have enough money to make ends meet and are not certain how they can get the money, some of them despair and turn to desperate means including suicide.

Most of the time the people who commit suicide for these reasons are working age people. Thanks to Social Security and Medicare, most elderly people in the United States have a level of protection that they can rely for their basic needs.

However, if those programs are cut or have their benefits reduced, that could change as Financial Advisor discusses in "Senior Suicides Could Rise If Social Security And Medicare Cut, Experts Warn."

Experts have concerns for two reasons.

The first is that there could be a devastating psychological impact for some elderly people who were promised benefits they will no longer receive. The second is that cuts to benefits could lead to more elderly people struggling financially.

Both of these problems could lead some people to commit suicide.

Of course, it should be noted that most proposals to reduce Social Security and Medicare benefits do not apply to those currently receiving benefits or those who will soon be receiving them. Most proposals apply only to younger people.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (January 5, 2017) "Senior Suicides Could Rise If Social Security And Medicare Cut, Experts Warn."

How Might Trump Policies Affect the Elderly and Disabled?

How the new President will affect the elderly has many people concerned. It is not yet certain what policies he will endorse.

Every new Administration brings uncertainty and questions about how changes in government policies and programs will us and our most vulnerable citizens – the elderly and those with special needs. Michael Gilfix, a nationally known authority in the field of law, aging and estate planning, recently shared his insights and those of his Trump Policy Analysis Group (TPAG) in the digital publication, Wealth Management.

Here are some of their observations in regard to policies affecting seniors, veterans and the “medically needy.”

• Social Security and Medicare: Trump has stated that he does not want to change Social Security and Medicare. However, he has not stated what, if anything, he will do to ensure that the programs remain solvent. Many of his Republican allies would like to reduce or privatize both programs.
• Medicaid: TPAG has examined some of the proposals which are designed to restrict protective planning – making it much more difficult for older Americans to protect their homes and other assets while qualifying for Medicaid, particularly in a Long Term Care setting. They recommend all seniors, and their families, stay up-to-date as more information becomes available.
• Tax Proposals: As a candidate Trump proposed many changes in the tax code, including to the estate tax and the capital gains tax. These changes could have a dramatic impact on estate planning and require that many current plans be revisited.
• Special Needs: No proposals have yet been made that would directly affect services for special needs children and adults. However, changes in the way federal Medicaid dollars are dispensed to the states could impact programs on a state-by-state basis.
• Veterans’ Benefits: While candidate Trump advocated supporting and even expanding services to veterans, there are currently proposals in Congress to restrict access to needed programs such as Aid and Attendance.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Management (January 6, 2017) "How Trump Policies Could Affect the Elderly and Those With Special Needs"