Annapolis, Maryland Wills, Trusts & Estate Planning

Preparing for the Realities of Aging - Annapolis Estate Planning

A healthy life where you retain all your faculties and enjoy yourself, is definitely preferred to decades of dementia. We don’t get to choose, but we can plan.

As Baby Boomers continue to change the face of aging, and so many embrace the idea of genetic testing, many are confronted with a harsh picture of what their future may bring. If that includes dementia, there are facts you need to know and myths that need to be uncovered.

The (Bryan TX) Eagle’s recent article, “Alzheimer’s disease: Five common myths, busted,” reports that, according to the Alzheimer’s Association, one in three seniors dies with Alzheimer’s or another type of dementia. There are up to 5.7 million individuals who live and die with the disease, which makes it the sixth leading cause of death in the United States. The article provides five common myths about Alzheimer’s disease.

Myth # 1: Memory loss is a normal part of growing older. A slip of the memory may well be a normal part of growing older. While these forgetful moments may cause a bit of frustration and embarrassment, they don’t affect our ability to live an independent life. However, if a loved one has trouble remembering commonly used words or loses the ability to communicate, it could be a potential symptom rather than a natural senior side-effect.

Myth # 2: Alzheimer’s can be reversed if it’s diagnosed early. No. Unfortunately, there's no treatment that will reverse the progress of Alzheimer’s disease. However, although there are therapies and drugs that can slow down the neurodegeneration associated with Alzheimer’s, there is no known cure. Even so, early diagnosis has its benefits, like better symptom management, a safer patient environment and the ability to plan for the future.

Myth # 3: Alzheimer’s just affects older people. Some Alzheimer’s patients can get diagnosed in their 40’s or 50’s. The early onset Alzheimer’s is uncommon (just 5% of patients are diagnosed before age 65); an accurate diagnosis is important to help the family cope with the realities of the disease.

Myth # 4: A diagnosis of Alzheimer’s means your life is over. Many people live years or even decades, before the disease claims their lives. Alzheimer’s effects each patient differently. The disease is commonly divided into three stages. The first or “mild” stage is where the patient is able to live a mostly normal life. The middle or “moderate” stage requires more extensive care. And in the late or “severe” stage, the patient needs 24/7 supervision and medical assistance. Life many never be the same with an Alzheimer’s diagnosis, but it’s far from over.

Myth # 5: There’s little you can do to protect yourself financially, if you are diagnosed with the disease. A serious diagnosis of any type can drastically impact a family, but it’s important to understand that there are things you can and should do to help your loved ones manage what comes next, emotionally as well as financially. Look at these ways you can help:

• Create a list of all financial accounts;
• Review the titles and names on each account;
• Look at your options for paying for medical care, such as existing insurance policies, Medicare coverage, or other sources of funding;
• Consider designating a Durable Power of Attorney for Healthcare, so that a trusted person can make decisions for the patient if there’s an accident or incapacitation;
• Communicating preferences for living arrangements, medical assistance, and end-of-life care; and
• Be sure your will is up to date.

Speak with an elder law attorney, who will be able to help you and your family navigate this process. He or she will also be able to recommend local resources that will help make this journey as good as it can be.

Reference: The (Bryan TX) Eagle (October 4, 2018) “Alzheimer’s disease: Five common myths, busted”

Holden & Campbell, LLC – Annapolis Estate Planning

Are You or Will You Become a “Solo Ager”? - Annapolis Estate Planning

“Solo agers face unique challenges, as their needs begin to change.”

Did you know that a study from the Pew Research Center says about 20% of the 75 million baby boomers don’t have children—a figure that’s double what it was in the 1970s and one that’s expected to keep rising.

We mention this because these people need someone to count on to always be there, if they need help making decisions and managing their affairs as they get older.

NH Magazine’s recent article entitled “The Difficulties That Come With Solo Aging” says that, for those without children or parents who’re estranged from them, it’s frequently a tough question to answer.

Our country’s 15 million “solo agers” or “elder orphans” now comprise a demographic that’s unprecedented in American history. This relatively new segment of society has a unique set of challenges.

As your physical, intellectual, and emotional capacities diminish, a person on his own must determine how he will be able to make sound decisions on financial and legal issues, relationships, housing and healthcare. There are also more cases being reported of elder fraud, and new scams are designed to take money from seniors. An elderly person could also wind up lonely and penniless.

However, there is help. Professional guardians can assist the elderly in reviewing their financial statements, creating budgets, paying bills, keeping keep them organized and sorting mail and email to see what’s a legitimate bill or a solicitation or potential scam.

A guardianship, which is also known as a conservatorship, is a legal process that’s used when a senior can no longer make or communicate safe or sound decisions about himself person and/or his property, he’s become susceptible to fraud or undue influence. The fact that establishing a guardianship can remove substantial rights from a person means that it should only be considered after other alternatives have proven ineffective or are unavailable.

In addition to a court-ordered guardianship, there are other options. There are also certified geriatric care managers, certified daily money managers, as well as attorneys who specialize in elder law.

Solo agers should arrange a future legal guardianship for themselves, a person who will assume control in a fiduciary capacity, if they’re unable to make decisions for themselves. This may be a relative or a friend, as well as a professional fiduciary or private guardian.

In addition, everyone should have a healthcare directive and an estate plan. However, solo agers have a more urgent need to have these important documents in place, while they’re still somewhat young and healthy—because they don’t have an adult child who will fly in from the other side of the country to provide that assistance and guidance.

Talk to several potential guardians or fiduciaries and go with the one whose skills most closely fit your needs and with whom you feel the most comfortable. Check their references and credentials thoroughly. You can also select different people for different tasks, which gives you a critical system of checks and balances. Be certain that you understand exactly what services each will provide and their fees and get it all in writing.

Reference: NH Magazine (October 2018) “The Difficulties That Come With Solo Aging”

Holden & Campbell, LLC – Annapolis Estate Planning

What Happens in Your World After You Die? – Annapolis Estate Planning

We’re not talking about what happens to your soul, or if you are headed to a peaceful place, or even what happens to your physical remains. Have you thought about what happens to the world you leave, your family and friends and your possessions, after you die?

Let’s say you don’t believe in anything in particular. Or you’re deeply spiritual and believe that death will be a wonderous journey. Either way, you should devote time and energy to what happens right here on earth after you die, says Forbes in the article, “What Will Really Happen After You Depart?”

No, not just because it’s the right thing to do and not just because you’re curious. It’s because you want your family to remember you for the awesome legacy you plan on leaving, not because of the horrible hot mess you left behind that they spent three years trying to figure it out, while trying to live their lives.

Estate organization is not the exact same thing as estate planning. An experienced estate attorney or elder law attorney can help you draft your will, your advance directive, your power(s) of attorney and a trust, if you need it. Your attorney most likely also has a copy of those documents.

However, the attorney has no power over what you do with your original estate planning documents, once you leave their office.

One idea is to develop a guidebook or “game plan” for your family and loved ones, while you’re alive. It’s known that there’s a strong correlation between how we face death and prepare our families—and their ability to survive, adjust and start the recovery process. Organizing your estate has been called a “gift of love” that goes far beyond when you can be around to take care of your family.

Answer these questions to start the estate organizing process:

• Does a family member know where to find your advance directive, if you end up in the hospital?
• Where are your legal documents and who in your family knows where to find them?
• Who has access to your bank accounts and knows your login data?
• Are you now caring for someone? Who’d assume that responsibility, if you’re unable to do so?
• Have you made final arrangements for your death, funeral and burial or cremation?
• Who knows about the plans and where the paperwork is located?
• Where are your insurance documents, and who knows where to find them?
• Who’ll take care of your pets, when you are no longer able?

Let’s also keep in mind that getting all these plans and documents in place is just the first step. They don’t do anyone any good, if you don’t talk with your family and loved ones about them. You have to make sure that they understand your wishes to avoid misunderstandings or family feuds, after you’re not around to correct them. The more you can discuss these matters in a calm, caring fashion, the better their grief process will be. Think of this as your opportunity to show how much you care about them. You want them to remember you with love, grieve in a healthy manner and be able to incorporate your loss, as their lives continue. Memories are a powerful force, and how you prepare for your passing, will also be a memory for them.

Reference: Forbes (September 13, 2018) “What Will Really Happen After You Depart?”

Holden & Campbell, LLC – Annapolis Estate Planning

Another Reason Why You Need an Advance Care Directive and an Updated Will - Annapolis Estate Planning

What kind of funeral do you think your almost ex-spouse will plan on your demise? Avoiding that scenario is easy to fix, even if you intend to stay permanently separated: update your estate plan.

The unsettling week that brought news of two very accomplished people who took their own lives also put a spotlight on their marital status. Kate Spade and Anthony Bourdain were not divorced from their spouses, so their “not-quite ex’s” will be in charge of everything, unless their estate plans were updated to reflect other wishes.

Forbes’s recent article, “Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated,” explains that when spouses decide to divorce, it’s usually a legal process. However, it’s becoming more common for spouses to remain permanently separated but not divorced. This is a gray area for both family law and estate law, where many don’t realize the legal implications.

Although the details of Kate Spade’s separation aren’t known, Bourdain’s separation from his second wife are, and his situation is a common one. He and his estranged spouse were together for years, but their work and other commitments caused them to move in separate directions. They had one child, whom they wanted to co-parent together.

However, with his untimely death, it brings up an odd result: his estranged spouse is his beneficiary.  She will also be the owner of his legacy. In terms of immediate issues, she controls his remains and his funeral. Bourdain’s mother told the media that she was unsure of funeral plans with his estranged spouse still legally his next of kin. She said, “Although they are separated, she’ll be in charge of whatever happens.”

While this might be okay for the Bourdain family, in the event you consider a permanent separation, it may be wise to consider the pros and cons of an estranged spouse’s rights. When you get married, spouses are given rights previously unavailable to them in their single status with their partner.  Separation doesn’t mean your spousal rights are immediately wiped out. Only a final divorce decree can fully terminate spousal rights. If there’s a death prior to a divorce, in most situations the surviving spouse will have legal control.

Even if the separation is amicable, there are a few things to consider. Make sure someone other than your estranged spouse is able to plan your funeral. To do that, you need to have a new Health Care Directive put in place. That’s a legal document, in which a person specifies what actions should be taken for their health, if they’re unable to make those decisions. It also address the disposition of the body in the event of death. Make sure that your funeral plans are included in your health care directive. In contrast to changing beneficiary designations or your estate plan in a divorce proceeding, you can make a new directive, and you aren’t required to name your spouse.

A final piece when the estate plan is updated: make sure to tell the people who will be involved: adult children and any others who will be in charge of you and/or your estate. Make sure that your estate planning attorney and your matrimonial attorney are in touch so that all bases have been covered.

Reference: Forbes (June 12, 2018) “Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated”

Holden & Campbell, LLC – Annapolis Estate Planning

Victoria W. Bayless: This community deserves a cardiac surgery program at AAMC - Annapolis Estate Planning

In her recent guest column in the Sunday edition  of the Capital Gazette, Victoria W. Bayless, President and CEO of Anne Arundel Medical Center, advocates for AAMC's cardiac surgery program. 

More than three years ago, Anne Arundel Medical Center sought permission from the State of Maryland to bring a cardiac surgery program to our community. You, our passionate supporters, have been with us on the journey every step of the way.

Together, we were heartened when in March 2017 — after a two-year wait — the Maryland Health Care Commission approved a cardiac surgery program at AAMC by a 9-0 vote. When our challengers appealed, we stood together nearly a year longer while the Prince George’s County Circuit Court weighed its decision. And we prevailed. In May of this year, the court ruled to uphold the commission’s vote.

The legal process should have ended there and we should be moving forward. But now, this critical medical service faces yet another delay.

The University of Maryland Capital Region Health, an affiliate of University of Maryland Medical System and parent company to UM Prince George’s Hospital Center, recently filed its second appeal to block a cardiac surgery program at AAMC.

Opponents have said a cardiac surgery program at AAMC will be “unfair,” “discriminatory” and a “disservice” to the residents of Prince George’s County. They have claimed that competition would take patients away from UM Capital Region Health’s existing program. We vehemently disagree.

 The residents of Anne Arundel County, the Eastern Shore counties and Prince George’s County all deserve access to comprehensive, quality cardiac services. The data are abundantly clear. In a region of 1.5 million people, where 1,100 have cardiac surgery every year, there is more than enough need for both programs.

This should not be a one-or-the-other scenario. The Prince George’s County Circuit Court judge even wrote in her ruling, “The future is bright for both facilities and, most importantly, for all citizens of Maryland.”

Bringing cardiac surgery to our community is what is right and fair for the people of this area.

It is for the family members who tell me how stressful it is being far from their loved ones at such a critical moment in their lives. It’s for the patients who pay upward of $20,000 for an emergency helicopter transport. It’s for the hundreds of patients who live in Talbot, Kent, Caroline and Queen Anne’s counties on the Eastern Shore who travel the greatest distances to Washington, D.C., and Baltimore to access this critical service.

The physical and emotional burden of cardiac surgery is enormous. So is the financial burden. Anne Arundel County is the most populous jurisdiction in Maryland without a cardiac surgery program. The financial reality of that is families, insurers, employers and the state are paying twice as much for these procedures at facilities in Baltimore and Washington, D.C. The cost totals approximately $8 million per year — and is rising.

A cardiac surgery program at AAMC will improve the patient and family experience, reduce the cost of care and save lives.

UM Capital Region Health should reconsider its position, drop its appeal and no longer delay this much-needed program. It’s simply the right thing to do. The residents of Prince George’s County have access to cardiac surgery. The residents of Anne Arundel County and the Eastern Shore need and deserve the same.

Victoria W. Bayless is president and CEO of Anne Arundel Medical Center. Contact her at [email protected].

Reference: Capital Gazette (June 23, 2018) "Victoria W. Bayless: This community deserves a cardiac surgery program at AAMC "

Holden & Campbell, LLC – Annapolis Estate Planning

What Your HSA Can Do for You During Retirement - Annapolis Estate Planning

Most people know that their ability contribute to an HSA becomes limited as they approach 65, but there are some opportunities presented as well.

There are some good reasons to squeeze every dollar you can into your HSA, as you approach retirement age. Start with the fact that healthcare costs in retirement are likely to be one of the eight biggest expenses, as reported in a recent healthsavings.com article, “Approaching Retirement? Five Tips to Maximize Your Investment HAS.”

According to Fidelity, the average couple will need $275,000 in today’s dollars to cover healthcare expenses throughout retirement. Did you know that your HSA (Health Savings Accounts) can be used to pay for Medicare parts B and D, long-term care premiums, long-term care, and normal medical, vision, and dental expenses in retirement?

Both you and your spouse should each have your own HSA, the year you turn 55. This lets you get all the catch-up contributions you deserve. IRS regulations require that each HSA catch-up contribution be associated with one Social Security number, so you and your spouse each need an HSA to max out your contributions. It’s not important which spouse has more. This is because you can each spend your HSA dollars to pay the other’s eligible medical expenses.

Even if you’re prohibited from contributing to your HSA because you’re enrolled in Medicare, you can still grow that account by moving it to an investment-focused HSA. There may be a transfer fee to move your money to the new HSA, but the receiving HSA may be willing to offset that transfer out fee. Just ask.

In many married couples, the breadwinner and insured party is often the older of the two spouses and that older spouse will usually enroll in Medicare as soon as possible. However, in some instances, he or she continues to carry the family health care policy at work to cover his or her spouse. This can be an opportunity because the spouse has family coverage, and in the eyes of the IRS, can make the family contribution to her, or his, HSA. The older spouse who’s on Medicare can’t contribute to an HSA.  However, as a family, they can make the family contribution to the HSA and one catch up amount of $1000 (assuming the contributing spouse is 55 or older). If both spouses have their own HSA’s for catch up purposes, it’s easy to shift who makes the contribution from the spouse covered by Medicare to the spouse who is primarily covered only by the high deductible. However, it can’t be payroll deducted from the ineligible spouses’ income, so you may sacrifice the FICA savings.

If you are employed and covered by your employer’s health care plan, you may be able to delay enrollment in Medicare. If you’re currently receiving any kind of Social Security or railroad retirement benefits, you’re automatically enrolled in Medicare Part A, so this won’t apply to you.

To max out on the amount of time you are eligible to make contributions to your HSA, delay taking Social Security benefits and postpone enrolling in Medicare. Remember that you must be employed and covered by health insurance through your current employer. Your health insurance must also fall into the “creditable coverage” category. Also—and this is critical—if you postpone your Medicare enrollment, there will be some specific timing requirements you must follow, when transitioning from receiving health insurance through your employer to getting coverage through Medicare. Follow the steps carefully, to avoid any major and costly mistakes.

Reference: healthsavings.com (undated) “Approaching Retirement? Five Tips to Maximize Your Investment HSA”

Holden & Campbell, LLC – Annapolis Estate Planning Attorneys

What You Need to Know About Trusts and Medicaid - Annapolis Estate Planning

The rules for different types of trusts and Medicaid vary. Before undertaking a Medicaid application, you will want to understand what kind of trust you or the applicant has, who owns it and how it is funded.

Strict income and asset limitations are part of the guidelines when applying to Medicaid, according to a recent article in nj.com, “How trusts fit in with Medicaid planning.” Because this is a needs-based government program, administered by each state, qualifying for assistance requires proving a financial need.

To prevent people from just making quick transfers of their property, either outright or in a trust, to qualify for the Medicaid program, there’s a penalty period imposed on transfers made within five years of applying for Medicaid.

The penalty is a period of time, during which the applicant doesn’t get Medicaid benefits after otherwise qualifying because of the amount transferred within the prior five-year period. The penalty period is determined by dividing the amount transferred by the monthly penalty divisor.

In the same vein, if a person creates a trust using some of his or her own funds, where the individual is the sole beneficiary or one beneficiary in a group of beneficiaries, the trust may be considered an available resource for purposes of determining eligibility for Medicaid. It will be counted as an asset when determining eligibility for the program.

This is especially true, if the trust can be revoked. A revocable trust and its assets can be “pulled back” into the name of the Medicaid applicant, and be counted as his or her asset for eligibility purposes.

If the trust is created by a third party and with third party funds for the benefit of the Medicaid applicant, the answer would depend on the specific terms of the trust and whether the settlor (the person who created the trust) is the spouse of the Medicaid applicant.

This is because income and asset limitations are imposed on the “community spouse” (the spouse still living at home), in order for the applicant spouse to qualify for Medicaid.

Another thing to bear in mind: in some situations, the state government has the right to recover funds from the estate of a Medicaid recipient who has died. That may include assets that are held in a trust, depending upon who owns the trust and how it was funded.

An experienced estate planning attorney will be able to guide your family through the Medicaid application. Planning in advance, before there is an emergency, is always the best strategy.

Reference: nj.com (December 26, 2017) “How trusts fit in with Medicaid planning”

Holden & Campbell, LLC – Annapolis Estate Planning Attorneys

It’s Never Too Early, Until it’s Too Late - Annapolis Estate Planning

Holden & Campbell works closely with the Anne Arundel Medical Center Foundation and will be assisting with their upcoming event, It's Never Too Early, Until it's Too Late, a workshop on planning and paying for serious illness. Please see the invitation below for information regarding the event.

We spend time planning our weeks, holidays and even vacations, but planning for serious illness when you are healthy is never at the top of anyone’s “to do” list. Often how we will pay for care is even further down on the list.

Anne Arundel Medical Center Foundation invites you to It’s Never Too Early, Until it’s Too Late, a complimentary workshop to help you plan for your future health needs and how you can best support the wishes of your loved ones.

Saturday March 3, 2018
Anne Arundel Medical Center
9:00am to 11:00am
complimentary continental breakfast beginning at 8:30am

This workshop will give you access to knowledgeable, local professionals who are experts in their fields of palliative medicine, funding long term care, and estate planning.

Hear from our Certified Palliative Social Worker about palliative medicine and learn how it’s changing the way patients and families manage serious illness. This type of specialized care is focused on providing patients with relief from the symptoms, pain, and stress of a serious illness. With a goal to improve quality of life for both the patient and the family, palliative care is appropriate at any age and at any stage in a serious illness, and can be provided along with curative treatment. As part of the nationwide Conversation Project initiative, our presenter will also share ideas and language to use when talking to your loved ones about their wishes.

Estate Planning Attorneys and a long-term care funding specialist will also be on hand to share ways you can best prepare yourself and your family for the potential of serious illness through medical directives, wills and options for funding long-term care.

Space is limited- Register HERE by Friday, February 23rd. 

Meet the Speakers:

Frank Campbell, Esq: Frank is admitted to practice law before the Bars of New York, Maryland, and Virginia. In addition to his law degree, Frank has earned Master of Laws in Taxation (LLM). He focuses his entire practice in the areas of Estate Planning and Administration, including the use of trusts and other entities for probate avoidance, estate and gift tax savings and planned giving strategies. He has served as a lecturer to the Maryland State Bar Association and the Anne Arundel County Bar Association. Mr. Campbell began his legal career as a Judge Advocate in the United States Marine Corps. Immediately, prior to associating with Holden & Campbell, Mr. Campbell served as the General Counsel for the Special Inspector General for Iraq Reconstruction, an agency designated to oversee and report to Congress on the reconstruction of Iraq. Frank serves on the Board of the Anne Arundel Community College Foundation and serves as the chairman of the Anne Arundel Medical Center Charitable Gift Planning Advisory Committee.

Kiernan Waters, Esq: Kiernan Waters is an estate planning attorney focused on aiding seniors and caregivers, baby boomers, individuals with special needs, and young families. She assists clients in designing and implementing foundational plans involving Wills, Revocable Living Trusts, Powers of Attorney, and Advance Directives for Health Care. Kiernan is experienced in planning for probate avoidance, asset protection, blended families, charitable giving, tax planning, business succession, special needs trusts, and trusts for minor children. She is a member of the Estate Planning Councils of Annapolis and Baltimore, the Maryland Bar Association, and the Anne Arundel County Bar Association. Kiernan has volunteered with Law Day 2017 and Wills for Heroes and is active in the Planning Committee for the Anne Arundel County Walk to End Alzheimer’s and the Anne Arundel Medical Center Foundation’s Building Traditions Society. Kiernan received her B.A. in 2010 from Salisbury University where she was in the Bellevance Honors Program. Interested in philanthropy, Kiernan moved to Baltimore, Maryland to pursue a Master’s degree in Public Administration focused on Non-Profit Management. She was accepted into the University of Baltimore’s dual JD/MPA degree program and graduated from the School of Law and College of Public Affairs in 2015.

David Prensky, Insurance Consultant: David Prensky is an insurance consultant at CNR Insurance in Annapolis for life insurance, disability insurance and long term care. David specializes in asset protection and mitigating risk for his clients. He focuses on long term care planning, estate planning, clients or family with special needs, charitable planning and mortgage and income protection. David also works closely with businesses handling business succession strategies, key person coverage and employee benefits. He works alongside other professionals such as attorneys, financial planners and CPA's to ensure the complete plan is in place. David knows that insurance is not always the answer but it should be part of the conversation in order to see if it fits into the plan. He also knows that there is not one carrier or strategy that works for everyone. For that reason, David has relationships with over thirty highly rated insurance companies. David graduated from Stony Brook in 1995 with a degree in economics. He currently is a member of the Anne Arundel Estate Planning Council and the Anne Arundel Medical Center Charitable Gift Planning Advisory Committee. David lives on Kent Island with his wife Emily and five children.

Maggie Kuhnlein: Maggie Kuhnlein is a Palliative Medicine Social Worker who works with Palliative Medicine Specialists at Anne Arundel Medical Center to assist patients with serious, chronic illnesses. She is passionate about helping patients improve their quality of life while focusing on what is important to the patient and their families. Maggie began her work in palliative medicine as a social worker with the supportive care team at Children’s Hospital of Pittsburgh of UPMC. Maggie developed the bereavement program at CHP to provide bereavement support to parents as well as anticipatory grief support to patients and families facing a terminal illness. Maggie is a Certified Hospice and Palliative Social Worker (CHP-SW) through the National Association of Social Workers and a Licensed Certified Social Worker- Clinical in the state of Maryland. Maggie holds a Masters in Social Work from Radford University.

 

Anne Arundel Medical Center Foundation 
2000 Medical Parkway, Belcher Pavilion 604, Annapolis Maryland 21401 
Phone: (443) 481-4747  |  Email: [email protected]
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Holden & Campbell, LLC – Annapolis Estate Planning Attorneys

Why You Need a Medical Power of Attorney – Annapolis Estate Planning

The medical power of attorney is all too often the missing piece of an estate plan. Not having it creates havoc for family members, especially in an emergency.

If you think the only reason to have an estate plan is so that junior can inherit your empire—or your coin collection— think again. Estate planning includes preparing for medical emergencies, according to a recent article appearing in twincities.com, “Your Money: Medical power of attorney: the missing piece of too many estate plans.”

This means determining the person who will look out for your best interests, if you are unable to speak. In short, it involves naming someone you trust as your medical power of attorney.

A living will, or advanced care directive, are important documents in your estate plan. However, you also need a medical power of attorney to help ensure that you are getting the kind of care you would want. A medical power of attorney, sometimes known as a health care power of attorney, designates the individual(s) you would want to make health care decisions in your stead, if you’re unable to communicate. This is your health care agent or representative.

Unlike an advanced care directive or living will, your health care agent can make decisions for you when your incapacitation isn’t life threatening.

If you don’t have a valid power of attorney designating your official health care agent, most likely either your spouse, an adult child or parent will be asked to make medical decisions on your behalf. This depends on the state in which you live and your circumstances.

Appointing a medical power of attorney is the only way to be certain the person you feel most comfortable with, is in charge in case of an emergency.

When you choose your representative, make sure he or she is willing to take on that responsibility. You should also name an alternate representative, if your primary person is unavailable. Be certain that he or she is comfortable in abiding by your wishes and relaying that information to your doctor.

An estate planning attorney will be able to create the forms that are required by your state, but make sure to have them completed: that means having them notarized or witnessed. Don’t leave out the last step!

Reference: twincities.com (December 16, 2017) “Your Money: Medical power of attorney: the missing piece of too many estate plans”

Holden & Campbell, LLC – Annapolis Estate Planning Attorneys

You Can Transfer IRA Funds to a Health Savings Account But… - Annapolis Estate Planning

Yes, you can roll money from a traditional IRA into an HSA to transform your tax-deferred savings into tax-free withdrawals.  However, you may only do so if you are using those dollars for medical bills. To get the biggest tax bang for your bucks, you’ll want to contribute new funds to the HSA.

What happens if someone, who is now covered by Medicare, started an HSA while they were working and now wants to fund that HSA with IRA money? Can it be done? Are there limits to how much can be transferred to an HSA?

Kiplinger, in its recent article, “Transferring IRA Money to a Health Savings Account,” explains that you can only transfer money from an IRA to an HSA, if you’re eligible to make new HSA contributions. A person who’s enrolled in Medicare can no longer contribute to an HSA.  However, the money in the account can be used tax-free for eligible medical expenses. Now that you’re over 65, these expenses include Medicare Parts B and D as well as Medicare Advantage premiums.

 Individuals who still qualify to make HSA contributions, can make a one-time rollover from an IRA to an HSA. That can be a wise way to build up the account, if you don’t have other cash to contribute. You currently must have an HSA-eligible health insurance policy with a deductible of at least $1,300 for single coverage or $2,600 for family coverage. The amount you can roll over is the same as your annual HSA contribution limit: up to $3,400 in 2017 if you have single coverage or $6,750 if you have family coverage, plus an extra $1,000 if you’re 55 or older. In addition, the annual contribution limit is the same, whether the money is coming from cash, an IRA rollover or a combination of the two.

Remember that you are required to transfer the money directly from the IRA to the HSA for the rollover to be tax-free. Ask your HSA administrator about how to do this. You can only roll money over from an IRA to an HSA once in your lifetime.

A rollover lets you convert tax-deferred dollars into tax-free money, if you use the withdrawals from the HSA for medical expenses. However, you’ll get a better tax benefit, if you can contribute new money to the HSA instead.

By doing so, you have an opportunity to have more tax-deferred money growing in the IRA while, at the same time, getting a nice tax deduction for your contributions to the HSA.

Reference: Kiplinger (August 18, 2017) “Transferring IRA Money to a Health Savings Account”

Holden & Campbell, LLC – Annapolis Estate Planning Attorneys