Elder law attorneys assist clients that are concerned about the eventualities of aging. There are between 10,000 and 15,000 applications for Social Security being accepted every day because of the aging of the baby boomers, so our services are in great demand.
The most pressing issue that we are dealing with at the present time is the matter of long-term care and the costs that go along with it, and we will share some inconvenient truths in this post.
Aging Statistics
You may find some activities to be a bit more difficult as you get older, but it can still be hard to envision a time when you will not be able to handle your basic day-to-day needs. This is understandable, but if you digest aging statistics, you may be able to adopt a different perspective.
There is a tool on the Social Security Administration website that you can use to determine your life expectancy in light of your age. If you plug in the numbers for a man that is turning 67 today, you will see that his life expectancy is 85 years, and it is 87 years for a woman.
When you stop and consider what life may be like as an octogenarian, you can see that some type of long-term care may be in your future.
Alzheimer’s Disease
A lot of people have to reside in nursing homes because of the impact of Alzheimer’s disease. The Alzheimer’s Association tells us that 32 percent of elders that are over the age of 85 have contracted the disease.
When you combine the aging statistics with this fact of life, a compelling picture emerges.
According to the United States Department of Health and Human Services, seven out of every 10 seniors will need living assistance, and 35 percent of them will reside in nursing homes.
Medicare Gap
The vast majority of seniors will qualify for Medicare as a source of health insurance. It is important to budget for the out-of-pocket expenses, because there are co-payments, premiums, and deductibles for services that are covered.
These expenses can usually be managed, but there is one enormous hole in the coverage that is not easy to overcome. This program will not pay for long-term custodial care, so you have to look elsewhere for financial support.
Long-Term Care Costs
It is not easy to pay for long-term care out of your own pocket. Genworth Financial has been conducting annual surveys that probe into the costs around the country, and their 2020 figures have been compiled.
Here in Manhattan, the median annual charge for a private room in a nursing home was $155,125 last year, and the figure was $141,255 for a semi-private room. For an in-home health aide, you are looking at a median annual cost of $59,488.
Medicaid and Medicaid Home Care
There is a solution in the form of Medicaid eligibility. This government health insurance program will pay for long-term care, but there is a low $15,900 asset limit in New York.
Some things do not count, including your home, but Medicaid could put a lien on the home after your death if you are in direct personal possession of it when you pass away.
In addition to full-blown Medicaid coverage to pay for assistance in a residential setting, there is a Community Medicaid program that covers in-home care. To develop a financial profile that will lead to eligibility, you could convey assets into an income-only Medicaid trust.
As the name would indicate, you could continue to receive income from the trust’s earnings, but you would not have access to the principal. If you fund the trust at least five years before you apply for Medicaid, the assets would not count.
There has been no look-back period for Community Medicaid, but a 2.5 year look-back has been established. It was scheduled to go into effect on April 1, but the implementation date will be pushed back at least to July 1, 2021.
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We are here to help if you are ready to work with a Manhattan, New York estate planning 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 212-973-0100.
While he was in law school, he worked as an aide to the late John Sparkman, Senior Senator from Alabama. This gave him the opportunity to gain intimate knowledge of the workings of government, and this background has served him well.
He started his private practice in New York in 1974, the first Sikh to be admitted to the bar in the state of New York.And in 1995, when he narrowed his legal focus to the areas of estate planning and elder law, the prestigious American Academy of Estate Planning Attorneys accepted him into their membership.
Special needs planning is an important aspect of the field, and Mr. Khalsa has intertwined his empathy with his expertise to become a leading advocate in this area. Shortly after the Education for All Handicapped Children Act was enacted in 1975, he won the first case in New York that was adjudicated under this law.
S.J. Khalsa has a penchant for philanthropy, and he has raised well over $20 million for charities nationwide. He is a deeply spiritual man who represents the Sikh religion at religious and interfaith gatherings all over the globe.
He believes that successful professionals should contribute to the fabric of their communities, and to this end, he works with law enforcement in New York.
Mr. Khalsa is a graduate of the FBI Citizens Academy program, and he is active in their Alumni Association. He is a member of the FBI/New York Police Department Joint Task Forces on Civil Rights and Hate Crimes, and he sits on the Community Engagement Council that advises the FBI Assistant Director for New York.
He is the author of the highly acclaimed book, Estate Planning Essentials: A Guidebook for Modern Families. Lawyers of Distinction recognized him for his excellence in 2020, naming him a 2020 Power Lawyer, and he is a member of the prestigious American Academy of Estate Planning Attorneys.
Mr. Khalsa lives in Manhattan with his wife, and he has two grown children and four grandchildren. He likes to travel, and he is an avid golfer. As the co-owner of Kundalini Yoga East in New York along with his wife, he instructs practitioners and aspiring yoga teachers.
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