Confirming what many have suspected, the Census Bureau has released figures that increasingly seniors are living in multi-generational families. These are families where grandparents, parents and often grandchildren share a home together.
Certainly, the economic downturn has provided some of the impetus for these increasing numbers, but other factors seem to be contributing as well. When a surviving parent can no longer drive, for example, or is experiencing mild dementia, or has suffered a stroke, it is now quite common for a senior to move into an adult child’s home. According to the Pew Research Center, nearly 30% of seniors will at some point live in a multi-generational household.
AARP reports joined households can be a positive experience for everyone. While the economic and care benefits are obvious, the multi-generational family has an opportunity to bond in a manner uncommon in our busy world. Children, and especially grandchildren, come to know their grandparents in ways they might not otherwise experience.
Even so, the multi-generational family in not without its challenges. Grandparents might not feel comfortable in an adult child’s home. They will not be "the boss" and there may be differences over pets. And if there are teenagers in the home, there are certain to be differences in social norms and expectations, not to mention noise.
The adult child must understand the needs and demands of the parent. There are likely to be additional time, energy and possibly even financial demands in sharing their home with an aging parent. Not infrequently these dynamics can add stress to a marriage. And adult families often underestimate the amount of care Mom might require. Even if Mom is healthy when she arrives, her care needs could change overnight.
Both generations should talk through these issues prior to making a decision to share a multi-generational home. Our office suggests the list of topics might include privacy and space allocation, shared meals, recreation, chores and especially finances. Shared cost for meals, utilities, phone and cable bills, or even a home addition, is certain to make a parent not so much an intruder, but rather a partner in the home.
Another issue is what to do with a parent’s furniture and possessions. Our office recommends the family plan a 6 month trial to ensure the new arraignments will work to everyone’s satisfaction. During this time it is wise to put the bulk of the furniture in storage and defer any decision as to its disposition until a later date.
Obviously, these are only a few of the considerations for a family thinking of a multi-generational household. Should your family be planning for your future home together, our experienced attorneys and staff are here to help ensure its success.
___________
Adapted from Kiplinger’s Retirement Report
5 CEU's approved for nurses and social workers
Call (702) 407-1100 or (702) 363-7566
for more information
The US Census Report has confirmed what we have all suspected; more and more seniors are living together without first getting married. In fact the number of seniors age 65 and above living together has more than tripled in just the last decade. Actual numbers may be even larger, considering the social taboos within the senior community against cohabiting couples.
While a majority of seniors still regard marriage as important, the increasing trend in cohabiting reflects a more relaxed attitude towards marriage. Only half of all adults reported being married during the 2010 Census, but nearly sixty percent of adults stated they lived with a partner.
For seniors, it’s not just changing social mores. Money concerns often overshadow marriage considerations. Many widows and widowers would forfeit retirement survivor’s benefits or Social Security benefits if they were to remarry. Additionally, children by prior marriages often complicate estate planning.
Significantly, with remarriage come legal obligations for support and care. If a spouse becomes ill and requires long-term care, the cost of nursing care, now more than $70,000 per year, falls upon the combined finances of the family, potentially impoverishing the family.
Sometimes our clients suggest they have a “common law” marriage. Nevada, however, has not recognized common law relationships for nearly 90 years and our statutes expressly reject common law marriages. What Nevada does have are excellent prenuptial laws. Seniors considering remarriage should always have a prenuptial agreement.
Yes, there is an unromantic element to a prenuptial agreement, but for most seniors cohabiting or married; their relationship is based upon companionship and sharing experiences with a sense of belonging and connection with another person.
If you are a senior and are considering remarriage, you should consult with your partner the wisdom of a prenuptial agreement. Here at Jeffrey Burr, we have helped hundreds of senior couples plan for the legal complexities of either cohabitating or remarriage.
Nevada recently passed legislation to protect the elderly from exploitation on transfers of property after death. Unfortunately, the elderly are often targets of financial exploitation. We often hear tragic stories of caregivers or others deceiving the elderly by fraud or undue influence and convincing them into leaving the exploiter a large inheritance. In its most recent legislative session, Nevada passed a law to protect the elderly from certain types of fraud and undue influence relating to transfers occurring after death.
The new law creates a presumption that a transfer occurring after the date of death is void if the recipient is:
The law provides that the presumption does not apply where the transfer does not exceed what the recipient would have received if the decedent died intestate or without a will. The presumption that the transfer is void can be overcome if a court determines by clear and convincing evidence that the transfer was not the product of fraud, duress, or undue influence.
We think the new statute is a positive change and we hope this new law will play a large role in protecting the elderly in the state of Nevada.
Earlier this year, A study done by Genworth Financial, Inc. reported that nursing home costs in Nevada are more than $4,000 a year above the national median. In Nevada, a private room in a nursing home carries a median rate of $82,125 per year.* Given the current economic situation in Nevada, expensive nursing home costs can be devastating for families. Families are forced to balance a desire to provide quality care for a loved one with the economic realities of high healthcare costs and a depressed economy.
Loved ones must be cautious as high healthcare costs can deplete savings in a short period of time. Fortunately, there is help. Families can find some relief through Medicaid where the family is unable to bear the costs to provide for a loved one. However, families should be aware that applying for state assistance can be complicated. Medicaid has specific rules and requirements that must be satisfied in order to receive aid.
Family members providing long-term healthcare assistance for other family members in these tough economic times must also remember to take care of themselves. Providing care for an ageing or disabled family member is not only financially draining, but can also be emotionally draining. Family members, especially spouses, must not attempt to do more than is physically possible. This can lead to financial ruin or physical exhaustion. It is often not possible to provide adequate care alone. Even though economic times are tough, it is important to seek help.
Jeffrey Burr Ltd. has a full service Elder Law division that is available to assist you in helping you with all your Medicaid and long-term health care assistance. We are happy to answer any questions you may have.
*Source: Genworth Financial Press Release, Home Care Costs in Nevada Rising Faster than Nationally, Finds Genworth's Annual Cost of Care Survey, Genworth Financial, Inc., May 10, 2011.
- Attorney Corey Schmutz
The Treasury Department now requires all future federal benefits, including Social Security and VA, to be paid electronically.
If you already receive electronic federal benefit payments, there is nothing further you need to do. You will continue to receive your benefit payments on your payment date as previously scheduled.
However, if you presently receive a federal benefit by way of a paper check, you will have only until March 1, 2013, to switch to an electronic payment option - meaning your benefit payments will be made by an electronic direct deposit to your designated bank account.
But what if you don’t have a bank account, or you don’t make a timely designation of your preferred account? In that event, effective March 1, 2013, you will receive your benefit payments via a Direct Express Debit MasterCard© card. Direct Express© is a pre-paid debit card. Your benefit payments will simply be credited to your debit card on your payment day each month. There will be no sign-up fees and no monthly service fees. However, if you sign up for elective optional services, these additional services will be subject to monthly service charges.
If you now wish to convert your paper checks to electronic direct deposits to your bank account, you may:
Two little-known benefits available to vets or their widows are the Improved Pension and the Aid and Attendance Program.
The Improved Pension is an asset and income based program available to vets or their widows whose assets and income are below certain levels as adjusted annually for inflation.
The Aid and Attendance Program provides additional benefits if the vet or widow is age 65 or older and is permanently and totally disabled. Anyone requiring nursing home care is automatically considered disabled for purposes of qualifying for this program.
Eligibility for either program requires the vet to have served 90 days of active service with at least one day of service during wartime with no dishonorable discharge. Vets who entered service after September 8, 1980, may have a longer minimum period of service.
The benefit levels for 2011 are as follows:
These are valuable benefit programs for American vets. If you or someone in your family is eligible for these enhanced VA benefits, the VA will assist in helping you qualify.
For more information, go to www.vba.va.gov/
It's official: High unemployment and a resulting decline in payroll-tax collections have taken a toll on the Social Security program. Benefits exceeded revenues for the first time in 2010–six years ahead of previous projections–according to the Social Security Trustees' 2010 report. But the nation's vital retirement program is expected to slip back into the black–at least temporarily–when the economy recovers, before posting increasingly larger deficits as more baby-boomers reach retirement age.
Projections suggest that there will still be plenty of reserve funds to continue paying full benefits for nearly 30 years. But without reform, the trust fund is projected to run dry around 2037, when tax revenues may only be sufficient to pay only about three-fourths of promised benefits. "The sooner action is taken, the more options will be available and the fairer reforms will be to our children and grandchildren," said Treasury Secretary Timothy Geithner in response to the trustees' report.
Reform proposals include raising the retirement age for full benefits to age 70, changing the formula for calculating annual inflation adjustments of benefits, and lifting the cap on the amount of wages subject to Social Security tax–currently $106,800–to upwards of $185,000. While each of these proposals would effectively equate to a “disguised cut” to our Social Security benefits, it is clear that something must be done, sometime, to improve the long-term health of our county’s social insurance system. The only question facing this eventuality is whether the political commitment to make these necessary changes yet exists?
It is common in our law practice to visit with individuals contemplating a second marriage. Often one of the parties will have a higher Social Security earnings record from a spouse from an earlier marriage. The questions is, if you remarry, how will your earnings record and Social Security benefits be determined?
Generally, if you remarry prior to age 60, you are not eligible for benefits based upon your former spouse’s earning record. However, if you divorce after 10 years of marriage, and your second marriage ends before you turn 60, your benefits based upon your first spouse’s earnings record will be restored. Further, when you reach age 62, you can choose to collect a “spousal benefit” based upon your new spouse’s earnings record or receive a benefit based upon your own earnings, whichever is the larger amount.
Remarry after age 60, and you will be eligible to receive a spousal benefit based on the earnings record of a deceased spouse, the spousal benefit of your current spouse, or a benefit based upon your own work record, whichever is highest.
What happens if your new spouse dies? You will be eligible for a spousal benefit if you are at least 60 years of age (or age 50 if disabled) as long as the marriage lasted at least 9 months, or your spouse had an accidental death, or you had a child (including adoption) together. You must be unmarried at the time of your application.
Social Security has an excellent website that is well organized. Answers to most of your Social Security questions can usually be found within just a few minutes. For more information, go to http://www.ssa.gov/.
"*" indicates required fields