John Lane Law

IRS to Use Private Debt Collectors to Collect Some Debts - John M. Lane Law, PLLC

“Consumer watchdogs are fearful that some of the nation’s most vulnerable taxpayers will be harassed and that criminals will take advantage of the system by phoning people and impersonating I.R.S. collectors.”

Starting in April, the IRS began using private debt collection agencies to collect past-due taxes. The new program could be confusing to seniors, who are vulnerable to scams.

Congress passed legislation in December 2015 that approved the IRS’s contracting with private debt collectors to collect certain debts. These private collection agencies can work on accounts where the taxpayer owes money and the IRS isn’t actively working on the account. That could be because the account is older or the IRS does not have resources to keep pursuing the debt.

The New York Times article, “I.R.S. Enlists Debt Collectors to Recover Overdue Taxes" notes that scammers have historically posed as the IRS to target vulnerable seniors in order to get personal information or money.

The IRS would never harass consumers over the phone. But this new program allows private debt collectors to contact taxpayers by phone. This may make it harder to know if a scammer is targeting the taxpayer.

Both in 1996 and 2006, the IRS tried to use collection agencies. However, both times, the programs failed, with the most recent attempt costing millions more than it took in. In addition, the program created thousands of complaints—one of which was the horror story about an older couple who received more than 150 phone calls in less than a month. Some changes were made.

The IRS will inform taxpayers by mail if it is turning their collection issue over to a private debt collector. The debt collector must also send a written notice, once it receives the taxpayer's information, and collection agencies are required to comply with all debt collection laws. These laws prevent debt collectors from harassing consumers. More information is found on the IRS website.

The IRS has contracted with these four debt collection companies:

• Conserve in Fairport, New York
• Pioneer in Horseheads, New York
• Performant in Livermore, California
• CBE Group in Cedar Falls, Iowa

In order to avoid scams, seniors should know that private collection agencies will only request payments to be made online at IRS.gov or by check. The checks should be made payable to the U.S. Treasury and sent directly to the IRS. They don’t go to the private collection agency. The collection agency won’t ask for payment on a prepaid debit card or gift card.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple. For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: The New York Times (April 20, 2017) “I.R.S. Enlists Debt Collectors to Recover Overdue Taxes”

Taking Care of an Elderly Parent Can be a Full-time Undertaking - John M. Lane Law, PLLC

“Each year over 43 million Americans provide unpaid care to a family member, usually a parent.”

Adult children who care for an elderly parent will typically be asked to oversee and provide medical care and finances. However, sometimes the caregiving goes far beyond this.  As a result, many adult children caregivers fail to think about the financial impact that this can have on their own monthly budgets and retirement funds.

MarketWatch’s article, “Read this before becoming your parents’ caregiver,” reports that, in many instances, the adult child caregiver is still able to maintain a full career and family life. However, in certain situations, the family member who’s assumed the role of a full-time caregiver must reduce his or her work hours or forego a promotion because of the time commitment. In the majority of situations, we see adult children answer the call of caregiving in a crisis when there’s an imminent need. A short-term assignment can be doable for a professional with his or her other family and personal responsibilities, but when the duties last longer, he or she will realize there isn’t enough time or resources to do it all.

A caregiver needs to take the actions necessary to help without putting his or her own family’s financial future at issue. When there are siblings and other family members involved, it is necessary to communicate realistic expectations of what areas of care are needed, responsibilities, time commitments and whether there will be any financial compensation.

A Personal Care Agreement can be a good guideline.  It will help to detail which individuals are responsible for various aspects of care, the amount of time required and any compensation. The biggest question that people have about this agreement, is how to get paid to be a family caregiver.

A Personal Care Agreement can give an adult child caregiver the peace of mind and security that he or she won’t suffer undue financial consequences, as well as provide clear details for other family members as to the expectations when assuming these important caregiving responsibilities.

This agreement can help avoid some of the misunderstandings that can occur when many siblings and loved ones are trying to help (or fail to pitch in). It also can protect a family member who is losing his or her own income and time to provide caregiving. This is because reduced hours or an exit from the workforce to care for a loved one, can have a major personal financial impact. In addition, the time for a personal and immediate family life with one’s own spouse and children can nearly evaporate with caregiving demands.

You can work with an Elder Law attorney to draft a Personal Care Agreement. Having an attorney review your Personal Care Agreement can even help to confirm that care payments were a legitimate and necessary expense, rather than a way to conceal assets from Medicaid.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple. For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: MarketWatch (February 22, 2017) “Read this before becoming your parents’ caregiver”

No One is Exempt from Planning for Incapacity - John M. Lane Law, PLLC

“Most people can’t or don’t want to think about the day they might be incapable of making even basic decisions.”

Incapacity planning is about designating how you want to be cared for in the event that you lose your cognitive ability. It’s hard to face, but it’s absolutely necessary, says Barron’s in “Three End-of-Life Estate Plan Lessons.” Most people don’t give much thought to the issue until it is too late to do it correctly. That means added expense and leaving money on the table for Uncle Sam to collect in unnecessary taxes.

Let’s look at some important lessons about incapacity planning:

1. Inform your surrogates and agents about your wishes immediately. You should also explain your thought process to them so they have complete information to carry out your wishes if necessary. What often happens is that Dad has a fall or an illness that puts him in rehab. The family reacts by shifting into crisis mode, and they make important decisions relying on the information readily available instead of the complete picture.
2. Select some strong surrogates. These are agents or advocates to whom you grant durable power of attorney. They will have control of your welfare. This includes handling your finances and paying your bills. Therefore, in addition to having great trust in your surrogates, you have to be sure that they’re able to manage your finances. Discuss the day-to-day administrative and financial tasks that they may need to monitor for you. Some people will divide the responsibilities into two jobs: a healthcare surrogate who will decide your medical decisions and a financial power of attorney to maintain focus on your financial affairs.
3. Don’t give a child who’s emotional and fragile the responsibility of cutting off your life. Many people select a child as their medical surrogate, but he or she may not be the one best-suited emotionally to make tough medical decisions. That involves decisions about withdrawing life-prolonging procedures or the intake of food, if the situation arises. That can be a huge emotional challenge.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Barron’s (November 8, 2016) “Three End-of-Life Estate Plan Lessons”

NFLers Huddle Up: Make a Game Plan for Possible Dementia - John M. Lane Law, PLLC

“This one’s for you, Peyton Manning, and you, DeAngelo Williams, and you, Jadeveon Clowney, and all NFL players and alumni: Do yourselves a favor and pay attention to the Sam Huff case.”

A recent Washington Post article, entitled “Today’s NFL players should look hard at Sam Huff’s case; they could be next,” says you should prepare for a time when you might become incapacitated as a result of your career. Fail to make proper plans and a judge could end up determining where you live.

The NFL estimates that a player has about a 30% chance of contracting Alzheimer’s or dementia. Players receive literature from the NFL Players Association about concussions and advice from agents and lawyers about estate-planning, but they rarely see the real picture of how people will treat you with a stigmatizing brain disease.

You need to make a game plan, or a judge will decide if you’ve been abused, neglected or exploited. Enter Sam Huff, who’s a Hall of Fame linebacker who was very successful after football. He was a VP at Marriott and enjoyed thoroughbred horse breeding. He lived on his horse farm in Middleburg, Va., for 30 years with his partner, Carol Holden, until 2012 when dementia was diagnosed.

Huff’s daughter, Catherine, is seeking legal power to make all of Huff’s life and health-care decisions for him. Carol filed an emergency petition seeking to return him to his home and to her guardianship. There’s a court hearing scheduled.

Can you believe that of the 1,600 players in the NFL each season, more than 500 will be diagnosed with some form of dementia? Here's a suggested blueprint for how to protect yourself, which may be just as important as wearing a helmet in action.

Here is some advice from the article whether you played on Sunday or caught the games on television:

Find a lawyer with experience in estate planning for Alzheimer’s and heed his or her advice. You need a specialist because Alzheimer’s planning requires a very thorough interdisciplinary legal knowledge, as well as insight into medical and criminal scenarios. An attorney experienced with dementia issues can educate you on why you shouldn’t give your child or spouse durable power of attorney without some type of neutral oversight.

Don’t create family problems. Appoint an independent third party “protector.” This can be a valued friend who has sound judgment and can monitor the conduct of the trustee over your trust and the attorney in fact under your financial power of attorney. This is a pretty new idea, but it helps to address potential financial abuse. A protector can make sure that any actions are in your best interests.

Declare legally that if there’s any change to your estate plan after your diagnosis, there needs to be a medical evaluation to ensure it’s your decision. Changes can be manipulations, especially if your power-of-attorney is also a beneficiary.

Legally provide that a geriatric care social worker be employed to facilitate your care. All of the agencies, facilities, and services create confusion and frustration for family members trying to help. But a geriatric care expert has the knowledge, social service resources, and experience to take care of living arrangements and quality care, which can ease the strain on the family.

Determine your wishes and provide for them. If you really want to live at home, look into how to do so with dementia and set aside the money. You might decide you want to live in a facility. Be sure you state in your estate plan that the location has a good nurse-to-patient ratio and specifically trained Alzheimer’s care.

While Huff’s situation shows there’s no such thing as a foolproof solution, you can start by working with a credible dementia-knowledgeable attorney.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Washington Post (Sept. 15, 2016) “Today’s NFL players should look hard at Sam Huff’s case; they could be next”

Like Gene Wilder, Many Opt to Keep Alzheimer's Disease a Secret - John M. Lane Law, PLLC

“Because cognitive impairment is likely for most people as they age, advisers shouldn't wait for signs to start planning.”

Comedic actor Gene Wilder, who died last week at age 83 from complications of Alzheimer's disease, didn’t tell anyone about his illness for at least three years. That's common, reports Investment News in “Hiding Alzheimer's, like Gene Wilder did, is natural, so prepare for it with all clients.”

The star of Willy Wonka and the Chocolate Factory and many other successful comedies is said to have wanted his fans to keep laughing over his life's work instead of being sad about his failing health.

Most Alzheimer's patients will hide their symptoms as long as they can because they'll lose control of their lives if their family or friends are under the impression they can’t take care of things on their own.

The first thing to recognize is that cognitive impairment is a significant risk. Financial advisers and elder law attorneys should take steps to protect these clients' finances from the impact of debilitating conditions like Alzheimer's. This is best accomplished before they notice any changes in the individual’s behavior. With dementia and Alzheimer's so common in the elderly, criminals frequently target older individuals because they can more easily be swayed into releasing money or disclosing personal information.

The first thing elder law attorneys will do is have their clients execute a legal document that lists the family members or friends whom the attorney can contact to discuss private information if he or she believes the client is starting to have cognitive problems. Clients may need some time to consider this difficult issue. However, if they refuse to provide this information, financial planners will often require them to sign a different document that releases the adviser from liability if the client is harmed because of his or her cognitive decline.

Get the complete legal picture from an experienced elder law attorney.

Advisers may also have a checklist to complete each year about their clients to monitor changes and document them over time. When they see “red flags,” like a client with memory loss or difficulty understanding the consequences of decisions, advisers may ask that a trusted contact start attending planning meetings.

Hearing a professional tell you he or she thinks you might have dementia is never welcome news, but this may be the opportunity to get medical assistance and to plan ahead for potential issues in the future.   Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Investment News (September 1, 2016) “Hiding Alzheimer's, like Gene Wilder did, is natural, so prepare for it with all clients”

Before You Panic and Sell the Family Home, Talk with an Elder Law Attorney - John M. Lane Law, PLLC

“Studies show that 55 percent of Americans die without a will or an estate plan, according to the American Bar Association.”

Let’s look at a difficult but very common scenario where a husband or wife has an immediate need for nursing home care. Unfortunately, the couple is financially unprepared and clueless regarding their options on long-term care. Many times a couple in this situation will think they have no choice but to sell their home to pay for that care. But before they do this, they should consult with an elder law attorney.

The Boston Globe, in its recent article, “Seniors have more options than selling their home,” says that an experienced elder law attorney can be the key to protecting your family’s health and financial well-being. This includes such assets as the family home.

An elder law attorney can show the senior couple that they have options—in most cases, they don’t have to sell their home to pay for emergency long-term care.

A couple’s money is often tied up in their house, so to fund the long-term care, they go ahead and sell it. When they sell it to qualify for Medicaid, which will cover the cost of long-term care, they exhaust the proceeds of the sale—in addition to the rest of their money. This leaves the healthy spouse—who can still live independently—with little in the way of financial security. This outlook can potentially compromise that individual’s health as well.

Before taking any action, talk with an elder law attorney and explore the options that would best meet the family’s needs. It’s critical to plan ahead. An elder law attorney will help you plan for the future to ensure your wishes on housing and health care can be satisfied.

For example, think of a couple in their late 80s with the husband needing nursing home care right away. They own a home and have about $210,000 in the bank. An elder law attorney can help the wife stay in the family home and preserve most of the remaining assets to keep her comfortable, while helping the husband receive Medicaid benefits. An experienced elder law attorney can offer assistance at any stage of a person’s life.

Don’t panic and sell your family home—speak with an elder attorney first to save it.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Boston Globe (August 19, 2016) “Seniors have more options than selling their home”

Elder Abuse Grows with Senior Population - John M. Lane Law, PLLC

“As the population of those older than 60 increases, so do instances of elder abuse.”

The Administration for Community Living says that hundreds of thousands of older persons are abused, neglected and exploited every year, reported The Hillsdale (MI) Daily News in “Understanding Elder Abuse.” They found that one out of every 10 people age 60 and older who live at home experiences elder abuse, including neglect and exploitation. Unfortunately, this statistic is probably underestimated as many victims are unable or afraid to report the abuse.

When it comes to scams, IRS phone scam are popular. A scammer calls a senior and threatens prison time because the senior owes the IRS money. In reality, the IRS doesn’t call people.

Unfortunately, many senior citizens are the target of scammers through phone calls, email and postal mail. Scammers can use charm, intimidation or scare tactics to convince their victims to hand over cash or credit card information.

Also, many seniors don’t look at their Medicare Summary Notices (MSNs), which are received quarterly. This provides details for all of the services received and what Medicare will pay. It’s not a bill. It’s a summary of services and Medicare payments. Keep a log of when you go to the doctor or have a test or treatment so you can compare what you actually received to what Medicare paid.

There also can be problems with seniors who become attached to a caregiver, whether paid or not. This can lead to poor choices, especially when a caregiver has financial or family issues and shares these problems with a sympathetic senior. Frequently the senior can’t afford to help financially but will still do so because of his or her attachment to the caregiver.

The stealing of prescription medications from seniors is also a big problem. Sadly, statistics show that family members or friends of family members are the most likely perpetrators.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Hillsdale (MI) Daily News (July 13, 2016) “Understanding Elder Abuse”

Is Your Loved One Elder-Proofed?

Huffington Post reports in "Writing an Eldercare Plan," that elder law attorneys view being elder-proofed as having legal documents such as living wills, do not resuscitate orders (DNR), durable powers of attorney for healthcare and finances, and a will.

But there's an area of planning that isn't given much attention. That is the day-to-day decision-making to ensure the desires of the senior are followed once they are unable to make those decisions known. It's important to write an eldercare plan to document his or her expressed wishes formally, so that they can have a say in how they will be cared for as they get older.

It's very important for seniors and their loved ones to discuss a care plan for the future before disease or dementia come into play, or a crisis causes eldercare services to become urgently needed. Get the plan drafted while the senior is still fully cognizant and rational. They can be signed when other end-of-life documents are put in place.

In truth, everyone wins with early discussions. When the patient is involved in the decisions for his or her potential care, the family has a better understanding of their preferences and are more prepared for any tough questions.

A good eldercare plan designates the roles and responsibilities for the care of the senior to specific individuals in writing. In addition, healthcare preferences and treatments can be detailed.

If your loved one has been diagnosed with Alzheimer's or Parkinson's disease, families should begin their elder and estate planning soon after the diagnosis, so that the patient can be an active participant. As part of your end-of-life documents make sure your elder law attorney drafts a health care proxy so that your loved one can designate a trust person to make decisions if he or she become incapacitated.

Start the eldercare plan process with a meeting with all of the family and important loved ones, friends, and even good neighbors. In addition, speak with an experienced elder law attorney so that nothing is left to chance.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Huffington Post (March 30, 2016) "Writing an Eldercare Plan"

Dispelling Misconceptions and Misinformation About Medicare - John M. Lane Law, PLLC

“Making the most of Medicare's home health care policy is easier than you think.”

Medicare home health coverage can be vital for seniors who are recently sent home from the hospital or who are suffering from a chronic condition and have trouble leaving home. Even so, taking advantage of this benefit can be a real challenge.

Kiplinger’s recent article, “Medicare Rules for Home Health Care,” explains that Medicare covers in-home services, including skilled nursing and physical therapy. If a patient is eligible, there's typically no charge and no limit on the length of time they can receive the benefit.

Patient advocates contend that the problem is that the eligibility requirements are often misunderstood by patients and providers. For example, Medicare's requirement that patients be homebound is often incorrectly interpreted as meaning that a person who occasionally leaves home isn’t eligible. This confusion over the rules results in some patients never seeking care because they think they won't qualify. Others are wrongfully denied care or see their services terminated prematurely, some critics say. There looks to be a great deal of subjectivity in some of the rules governing home health benefits, advocates claim.

To qualify for Medicare, you must require part-time skilled nursing, physical or occupational therapy, or speech-language pathology. These services have to be provided by a Medicare-certified home health agency and under a care plan established by your doctor. Finally, a doctor must certify that you're homebound, but this isn't as restrictive as many people think. Under Medicare's rules, your illness or injury must cause you to have trouble leaving your home without help—like using a walker or special transportation—or must make leaving home difficult and medically unadvisable because of your condition. Things like occasional religious services or health care visits don’t disqualify a person from being “homebound.” It doesn’t mean bedbound, and some Medicare Advantage plans waive the homebound requirement entirely.

Home health care should keep going as long as you are eligible. Some patients’ services have been terminated because their condition isn’t improving, but the rules don’t require this. Medicare beneficiaries filed a nationwide class action lawsuit in 2011 arguing that providers were inappropriately applying an improvement standard. That case settled in 2013 with the understanding that patients should be able to get care to maintain their condition or even slow their decline. However, the misperception persists.

If a person believes his or her home health care is being wrongfully denied or ended prematurely, this individual can file an appeal. When a home health agency suspends care, it must provide written notice that includes the rationale for ending care and contact information for a Quality Improvement Organization, a group of health-quality experts who will review your appeal.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Kiplinger’s (June 2016) “Medicare Rules for Home Health Care”

Laws for Guardianships Slow to Change - John M. Lane Law, PLLC

"Judges are really worried about people getting hurt; they think guardianship protects them. They do get hurt...when they get stuck in nursing homes."

Abusive guardianship cases have made headlines for decades. Tales of relatives fighting over Mom to access her savings, professional guardians draining an estate through high fees, or nursing homes filing for guardianship to keep their beds filled have been regular occurrences.

When a judge imposes legal guardianship or conservatorship, the ward or "incapacitated person" may no longer be allowed to decide where to live or whom he or she will see. If a guardian is appointed, that individual gets to decide whether the ward is allowed spending money. He or she won't be able to enter into contracts, including marriage, or demand a different guardian—even if the guardian is abusing the ward or stealing his or her money.

According to a recent nextavenue.com post, "Guardianship Laws: Improving, But Problems Persist," there were 33 changes in adult guardianship laws in 18 states in 2014. A report by the Commission on Law and Aging of the American Bar Association stated that the changes were on issues like background checks on guardians, access of the ward to visitors and phone calls, health care decision-making by guardians, fees, and rights of people under guardianship.

There are no reliable statistics on exactly how many guardianships there are nationwide. Today, experts believe that there are 1 million to 2 million. Some of the changes in recent years include these requirements:

• The would-be "incapacitated person" is notified of the guardianship hearing and the right to be present if desired;
• He or she has the right to an attorney;
• There must be "clear and convincing" evidence that the person is incapacitated and, in some states, that guardianship is necessary to avoid harm; and
• A medical expert must assess the proposed ward.

But many states are resistant to change. One major push in new legislation in the U.S. has been to require judges to grant limited guardianship orders whenever possible, instead of a complete and total termination of the ward's rights. A preference for limited orders is the statutory mandate in almost every state, but there are an excessive number of removals of rights in too many cases. There's a strong push for judicial efficiency against them.

Many advocates think that it's way too simple to get a judge to sign off on a guardianship or conservatorship. The evidence stating that the older adult can't handle his or her own affairs is supposed to be "clear and convincing," but it really may only be one of the following:

• a brief letter from a general practitioner who's taking the word of an adult child;
• a statement from a doctor who doesn't know the difference between delirium (temporary) and dementia (permanent);
• a court petition from a proposed guardian or conservator with a conflict of interest;
• a petition from a nursing home that wants a regular, paying client; or
• a statement from an adult child who wants to take over the decision-making from a parent instead of determining necessary care.

Another issue with efforts to reform guardianship and conservatorship is the difficulty of monitoring. Most states require guardians and conservators to keep records of their activities and file regular reports with the judge, but compliance can be a mystery. Many courts simply don't have enough resources to hire staff to track the reports and investigate potential problems.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: nextavenue.com (May 24, 2016) "Guardianship Laws: Improving, But Problems Persist"