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How to ensure the RIGHT kind of long-term care
“Old times never come back and I suppose it’s just as well. What comes back is a new morning every day in the year, and that’s better.”
- George Edward Woodberry
I hope your weekend went well–our family has been enjoying the Olympics, and, in particular, many of the stories which go with it.
If you’ve paid any attention, you probably heard about American, Lindsey Vonn. She’s known as perhaps the world’s top female skier having dominated the World Cup the last couple years–but she entered these Olympics with a serious shin injury which left her hopes seriously dimmed.
Well, in her first event, she came through.
And the sheer explosion of joy when she saw her time…well, it will bring tears to your eyes. Watch it here:
http://www.nbcolympics.com/video/assetid=04fb8dfd-11ac-413d-88ad-efb130f93ebd.html#emotional+victory
It’s stories such as this one which always make the Olympics compelling, in my opinion–the story of lives in pursuit of an audacious goal.
Yet for far too many people, the “story” of their lives doesn’t end as well as they might have hoped. Care facilities (when they’re necessary) can be a blessing…or they can be a nightmare. So, to help you make sure that your family (and your friends’ families) make the best decision possible, I’ve put together a two-part series on nursing home placement–and how to do it right.
Feel free to forward this along to anyone who may be affected by these issues. We’re always here to help!
“Straight Talk” Personal Strategy
Making Nursing Home Placements That Work (Part 1)
It’s a fact: most nursing home admissions happen under extremely stressful circumstances.
It’s an overwhelming task, to find the best nursing home placement for a loved one, perhaps because, where do you even begin?
But, although this is a job that no one wants, it can be done with forethought and confidence that the best decision was made for everyone involved. It’s easier (and better for your loved one), if that first placement is well thought out. Yes–a nursing home resident can be moved from one facility to another, but this type of disruption is rarely in everyone’s best interest as it can be disturbing on a variety of levels.
So it’s best to do it right–from the beginning.
Here’s a great place to start your search:
The Federal Center for Medicare & Medicaid Services (CMS) has a part of its Web site called “Nursing Home Compare”. Surprisingly, for a government service, it’s actually quite handy:
This area identifies facilities that have a history of poor performance–and ones which do well. In fact, the Nursing Home Compare site labels nursing homes it calls “Special Focus Facilities” — those that have repeatedly violated state and federal health and safety rules and that rank in the worst 5 to 10 percent of all inspected facilities in a given state.
You’ll want to cross those off your list from the very beginning.
Using this website, you can see detailed inspection information about each nursing facility that interests you, comparing various government-rated “quality measures” such as:
• Percent of High-Risk Residents Who Have Pressure Sores
• Percent of Residents Who Spend Most of Their Time in Bed or in a Chair
• Percent of Residents Who Have Moderate to Severe Pain
• Percent of Residents Who Were Physically Restrained
Et cetera.
The site also rates the care and services that each facility provides to its residents, and allows you to view how each facility stacks up in staffing hours for each type of health care worker against the state and national averages.
And there’s other comparison tools available. For example, U.S. News and World Report has recently started providing rankings of America’s nursing homes.
These rankings rely on the data from the above, government site–but they DO provide some advanced search engine capability. Nursing homes are presented in tiers within each star category, based on their total stars in all three of the major areas. The topmost tier, for example, consists only of five-star homes that got 15 stars. The next tier down is five-star homes with 14 total stars, and so on.
Within each tier, nursing homes are listed alphabetically. If you’re looking for a nursing home by location, and turn up too many, search terms can be combined in order to narrow the results. For example, perhaps you want to search just for nursing homes that have a religious affiliation, or that accept Medicaid residents. Or you can launch a multipronged search, perhaps searching for non-profit four-star nursing homes that accept Medicaid and are located within 25 miles of a particular city.
Placing your loved one in a nursing home that accepts Medicaid is vitally important if you plan to use the services of a law firm to help you with Medicaid Asset Protection.
Another free Web site that lets you compare nursing homes is www.MemberoftheFamily.net, which features easy-to-read, color-coded assessments of nursing homes nationwide.
However–here’s my big caveat when it comes to just looking at ratings: Nothing can substitute for visiting a nursing home in person. After all, every nursing home will have some deficiencies; working with extremely disabled and impaired persons is very difficult.
So, to find the best possible nursing home for your family’s situation, the first step is to determine what is most important for your family in looking for a facility. And I hope that you would agree that the potential resident’s needs and desires must be included in this evaluation. Consider variables such as location of the facility, whether a special care unit (such as for dementia) is available, and what types of payment sources are accepted.
The second step is to identify the facilities in your area which meet the criteria you have established.
In my next Blog, I’ll give you some pointers on how to conduct an onsite tour properly–what to look for, questions to ask, etc.
And, of course, we’re here to help. Give us a call if we can serve you in any way!
Valentine’s follow-up, 5 essential documents
“Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable.”
- Sydney J Harris
Last week I blogged about financial communication in your marriage. So, now my question–how did Valentine’s go?
Some say it’s a “Hallmark Holiday”, but well–some spouses think otherwise, right? Well, if you blew it, I’ve heard that it’s NEVER too late. Make this week count, my friend.
That said, I’ll move back to my area of *true* expertise here, and delve into some critical information which you should have–and review yearly.
Read on, and leave a comment! And, of course, if you need help with any of this, that’s exactly what I’m here for!
“Straight Talk” Personal Strategy
Five Critical Documents Every Family Must Have
While my family has openly shared financial information with one another, other families consider those figures dark secrets. Having heard too many financial horror stories I recommend our family’s financial openness and suggest an annual review of these five documents as a model for others.
1) A will
You need a will to direct the transfer of your assets after your death, no matter how “poor” you are. Seven out of ten people don’t have a will, but don’t take comfort in numbers. Six of the seven won’t read this article, and the other three families have finally made a priority of getting a will. Go do your will. The larger your estate, the more complicated the will may be. But it’s time and money well spent. Advance planning can save your loved ones time, frustration and money.
2) A living will
You need a living will so that someone else can make decisions about your life if you can’t. It also states your preferences for life-prolonging procedures in the event of permanent illness or unconsciousness where your death is imminent. It is sometimes called a “durable medical power of attorney.” A living will ensures your wishes are followed without making your family guess.
3) A power of attorney
You need a power of attorney to authorize someone to manage your finances if you are sick or disabled. One advantage of a financial planner who manages accounts is that they continue to manage your assets even if you are incapacitated. Unlike a broker who requires your approval for transactions, a fee-only financial planner can be given a limited power of attorney to manage your investments without any financial conflict of interest such as a broker who earns commissions from those trades.
Even if you have an asset manager, however, you should still have a power of attorney to facilitate your other financial obligations if you are incapacitated.
4) A directory of basic information
You need a directory of basic information for anyone who needs to take over handling your finances in an emergency. You should collect a list of all your assets (stocks, mutual funds, bonds, real estate, loans, 401ks, IRAs, etc.), where they are located (safe-deposit box, former employers, brokerage accounts, etc.), their approximate value, and the names of your professional advisers (tax advisers, lawyers, financial planner, investment counselors, trustees, etc.). Be sure to include the appropriate account numbers, phone numbers and contact information.
If you think this information is hard for you to pull together, imagine how difficult it would be for someone else who is asked to fill your shoes in an emergency!
5) Yearly financial statements
You need a yearly collection of financial statements both for yourself and also for those helping you with financial planning.
Your yearly financial statements should include a net worth statement, an asset allocation analysis, the cost basis for all taxable investments, the past year’s performance, your current income and a copy of the first two pages of your tax return.
This exercise will take some time to complete the first time you do it. However, in subsequent years, the task will not only take less time, but you will be able to compare this year’s total with prior years. That way you can quickly see how you are progressing toward your goals.
Communicating honestly about your finances with your family and putting your estate in order passes on a legacy of foresight and financial wisdom that will help generations to come. And it’s never too late to start.
I hope this helps.
Help your marriage sing
“There are generations yet unborn, whose very lives will be shifted and shaped by the moves you make and the actions you take.”
- Andy Andrews
As a family law professional, we meet with married couples every week. It’s part of what we do–and, as we do so, we get sort of a crash course in marital communication.
Now, before you get worried–know that we don’t pass judgment on anybody’s marriage! Everyone has their own, unique relational dynamic. And every marriage works a little bit differently–it’s part of what makes it a wonderful institution.
That said, however, I’ve noticed that *finances* can be a major sticking point in a good marriage.
But there are simple steps you can take (five, by my count), which will ensure that you don’t ever fall into the trap of letting a good marriage be spoiled by money miscommunication.
Let me know your thoughts!
“Straight Talk” Personal Strategy
Financial Communication In A Marriage
Money problems can ruin the love affair with your spouse. The work of blending two lives in harmony requires certain basic commitments. It’s a fact that many families today are financially troubled.
Most of these are in denial. The rest of them are looking for a quick fix. Even a financial planner can’t help unless the couple is willing to make five simple commitments. You can always choose to find something to fight about. But if you are serious about removing the financial obstacles in your love life, you should commit to the following money management rules.
1) First, take the time to provide open accounting to your spouse. Most financial arguments are not about how to spend your money–but about how the money was actually spent. Just like every publicly traded company is required to give a public accounting of its finances, couples should do the same. In the public sector, it’s considered a scandal when a corporation fails to provide its financial information in a timely fashion. The same rules should apply at home. Financial accountability, openness, and honesty are essential in marriage.
2) Next, make saving investment in yourselves your first priority. Pay yourself first. Couples should agree on a savings and an investment rate and should prioritize their savings above all other budget categories. Savings should be automated and protected from impulse spending habits.
I’ve come to believe that savings should even be prioritized above debt reduction. I’ve found that couples that are in debt cannot seem to get out of debt because they are using what should be going into savings to service their debt, rather than adjusting their lifestyle so that they are spending less than they make.
3) Set a limit on what you can spend without first getting the approval of your spouse. Each spouse must sign off on spending that might be a budget-buster. If you are young or your finances are in trouble, the amount should be fairly low. As you get more experience and your finances are in harmony, you can raise the amount. Any purchases above that amount should require the agreement of both spouses.
In the same way, any purchases beyond what was budgeted should require the agreement of both spouses as to which budget category is going to be reduced in order to make up the difference. If your spouse asks you to wait before making the purchase, lean toward waiting graciously. Ask what you would do if you did not have the money at all. Then, do that instead. Delaying a large purchase even by a month can significantly increase your financial health.
4) Set rules for the acceptable use of credit. In my experience, the easy use of credit cards ruins much financial harmony. It is better when the use of credit cards is limited to only certain required budget items. Using a credit card for groceries or gasoline may be harmless. But when credit cards are used for clothes or eating out, optional spending is unnecessarily inflated.
There are several advantages to using credit cards. But each of these advantages becomes powerful disadvantages for a family struggling to make ends meet. Credit allows couples to avoid asking the tough question about what they would do if they did not have the money. Credit makes spending easy and simplifies check-writing. These advantages are as helpful as giving an alcoholic a place to sleep in the back of the bar.
Either spouse should be able to veto the use of credit cards entirely. Only if both parties agree to the use of credit cards, should they be allowed – and then only within certain guidelines.
Credit should only be used for specific required monthly categories, and then only by the spouse who is less apt to make extra purchases on impulse. If you are struggling with your finances, stop using credit cards entirely.
5) Lastly, agree together that ignorance is no excuse! Both parties must be willing to learn. Just like a good love life, finances cannot be handled well by just one party. Many problems stem as much from ignorance and abdication by one party than spending by the other. If you don’t have the time or the interest to be involved in the family’s finances, then you may be the problem. Ask for help and start learning.
Look, I’m not a marriage counselor. But I DO know good communication when I see it.
I hope this helps.
Getting ready for tax time
Be true to your work, your word, and your friend.
- Henry David Thoreau
I hope your weekend was restful! At the Manasan homestead, we enjoyed some nice family time. It felt like we hadn’t had that opportunity for a while…so it was welcome!
Well…we’re moving into the “Love” month! But for many folks, it’s also the TAX month. Ouch.
Even if you’re working with a CPA or tax professional, it’s just a big pain to gather all of your tax documents without missing anything.
And, well, I’m a pretty good planner–if I do say so myself! So, I thought I’d share with you a little checklist I threw together to make sure I don’t miss anything when I meet with my CPA.
I hope it’s helpful!
“Straight Talk” Personal Strategy
My Tax-Time Checklist
This list is mostly complete–but I’m always looking to add to it! Let me know if you think I missed anything.
Personal Data
Social Security Numbers (including spouse and children)
Child care provider tax I.D. or Social Security Number
Employment & Income Data
W-2 forms for this year
Tax refunds and unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Partnership and trust income
Pensions and annuities
Alimony received
Jury duty pay
Gambling and lottery winnings
Prizes and awards
Scholarships and fellowships
State and local income tax refunds
Unemployment compensation
Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses
Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DIV
Proceeds from broker transactions: Form 1099-B
Retirement plan distribution: Form 1099-R
Capital gains or losses
Financial Liabilities
Auto loans and leases (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other fixed time deposits
Automobiles
Personal property tax information
Department of Motor Vehicles fees
Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses (tuition and fees)
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees
Self-Employment Data
Estimated tax vouchers for the current year
Self-employment tax
Self-employment SEP plans
Self-employed health insurance
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income
Deduction Documents
State and local income taxes
IRA, Keogh and other retirement plan contributions
Medical expenses
Casualty or theft losses
Other miscellaneous deductions
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