Creative Ways to Boost Your Social Security Income

Elder law attorney Gene L. Osofsky of the law firm Osofsky and Osofsky suggests putting on “your thinking cap” when it comes to obtaining additional social security income.

Every year, more than $10 billion in Social Security benefits go unclaimed. Asserts attorney Gene L. Osofsky of the law firm Osofsky & Osofsky, “This is primarily because married couples do not know how to optimize their social security benefits.”

Much of this unclaimed bonanza does consist of spousal benefits that most people don’t even know they’re entitled to receive. “These benefits can increase your income and solve the riddle of whether it’s more advantageous to get immediate monthly income at age 62 or wait until you’re age 66 and get a bigger check – maybe significantly bigger,” Osofsky says.

If you do wait until age 66, which the U.S. government considers full retirement age, for people born between 1943 and 1954 the monthly benefit will be one-third greater than if you take it at age 62. If you wait until age 70, the check will be 76 percent larger. The longer you live, the more it will matter, and chances are, you’ll live a long time. The typical 65-year-old can expect approximately an additional twenty years of life. Within that pertinent group of 65-year-old elders, 41 percent of women and 28 percent of men will live to age 90 – and half of those women will make it to age 95, as will one-third of the men.

Spousal benefits offer a way around the potential conundrum. “If you’re married – or if you’re divorced after ten years of marriage and haven’t remarried, you can claim a benefit not only on your own work record, but also on your spouse’s,” explains Osofsky. No, you can’t collect those benefits simultaneously. But you might be able to get them consecutively. “You can file first to get a spousal benefit, and then later to get your own benefit after it has grown as large as possible. It just has to be done in the right order,” Osofsky says.

Being astute about these spousal benefits and how they work, can result in increased social security income for a married couple. “You may be able to increase your household income substantially over time,” Osofsky concludes, “You just have to be smart about it.”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Blended Families Can Prove Challenging to Caregivers

Divorce seldom fails to up the complexity quotient when you add stepparents into the caregiving and estate planning equations, explains Elder law attorney Gene L. Osofsky of the law firm Osofsky & Osofsky.

Attorney Diane Fener, based in Virginia Beach, Virginia, has family duties when she travels to New England to visit her parents. Her mother lives in the dementia unit of an assisted living facility in Rhode Island. She then meets with her father at his apartment about a half-hour drive away in Massachusetts. Her father’s second wife, Ms. Fener’s stepmother, lives nearby in a nursing home and she too, has dementia. She last visits her stepfather – the man who was her mother’s second husband for more than two decades.

“I’m sure that Ms. Fener doesn’t get to spend as much time as she might like with each of her parents,” says attorney Gene L. Osofsky of the law firm Osofsky & Osofsky, “but her situation is typical of many blended families today.”

During the 1970s, there was a spike in U.S. divorce rates. In the aftermath of that spike, states liberalized their divorce laws and working women became less inclined to remain in unsatisfying marriages, the cultural stigma of divorced lessened, and grown children of these broken marriages are dealing with the unintended consequences. “A new layer of complexity has been added to an already complex and emotional situation, especially for caregivers,” Osofsky explains.

In fact, the added stresses of divorce, family upheaval, and tighter finances can be so detrimental to your health that the effects can linger for years into the future. Because Osofsky & Osofsky is frequently engaged to help divorced or remarrying couples update their estate plans to protect their newly blended families, Ms. Fener’s plight struck an empathetic chord with Osofsky. “Divorce can have poignant and practical effects 20 or 30 years down the road,” he explains, “not just on the couple but also on their grown children now acting as caregivers.”

Adult children of aging parents can find themselves caring, not only for mom and dad, but also for stepmom, stepdad, and sometimes even extra sets of stepparents from an additional or current marriage. “Dividing time and often finances between so many parents with new and special needs can quickly take its toll,” Osofsky concludes.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Despite Estate Tax Uncertainties, Better Not Procrastinate

While Obama might be procrastinating about what to do about the estate tax, you’d better not.
President Barack Obama was supposed to tackle the thorny issue of the estate tax from the get-go, considering that the expiration date was already set for 2010.

Mr. Obama is at heart a cautious man. During his 2008 campaign, he pledged to raise income tax rates for top earners, but has since reneged, as advisors have told him that such an elimination of high income “tax cuts” as Republicans like to call them – would have an adverse effect on a chronically ailing economy during a deep recession.

Despite the “Death Tax Repeal” movement’s best efforts, it looks like the estate tax is here to stay.
Democrats seem determined to act with deliberate speed to prevent the estate tax’s scheduled repeal. A prior levy on large inheritances was first approved by Congress under President George W. Bush in 2001. Rollbacks were phased in, albeit slowly, with a full elimination in place for next year.

The Senate Finance Committee is expected to propose legislation to reverse the scheduled elimination in lockstep with a likely announcement of the Obama Administration’s detailed estate tax preservation proposal in his October 2009 budget. This anticipated “swift action” by Democrats was associated with a rationale that it would be politically more difficult to initiate their plan to resuscitate the estate tax once it was gone.

Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that became law in 2009. Estates of up to $3.5 million (twice that for couples) would be exempt from any taxation. The value of estates above that would be taxed at 45%. If the tax were restored to Clinton-era levels, the first $1 million would be excluded from being taxed and the remainder taxed at 55%.

Nearly a year has gone by since candidate Obama’s campaign promises were initially voiced regarding the estate tax. But despite the procrastination of our elected leaders, a version of the estate tax will likely be still in place next year, although the sort of permanency that estate planners might have wished for may remain elusive. So despite the fact that uncertainties exist and are likely to linger, it’s not the time to “sit on the fence” when planning your estate. Contact your elder law attorney or estate planner at your earliest opportunity to review your personal situation.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

I’m Dad’s Executor. What Do I Do Now?

The death of your parent is bound to be an emotionally confusing time without the additional responsibilities of being named as executor of his or her estate. Elder Law attorney Gene L. Osofsky of the law firm Osofsky & Osofsky has some sound advice and insight for those placed in such a predicament.
Having being named the Executor of the Estate for your father, which by many is considered an honor, means that you must have more patience and focus than the remainder of your family. This is difficult to do in times of high stress due to a death in the family. Some of the responsibilities which you must thereby assume include the following:

Creating an accounting for the deceased’s assets and liabilities

Giving notice to potential creditors

Settling outstanding debts

Making distributions for estate taxes, if applicable

Making fiduciary income tax return

Making distributions to named beneficiaries

Filing a final accounting with the court to close the probate process

Included with these responsibilities is the duty to keep the estate viable during the probate process. This may include paying the mortgage on a house or even making car payments. Probate can often be a lengthy process, which is why you can petition the court to release short term funding for these purposes while probate continues.

“If you’re thinking that this sounds like no easy job, you’re absolutely right,” says Osofsky. It is an endeavor that should never be undertaken lightly. Executors are generally entitled to compensation from the deceased’s estate, but most immediate family members decline this option. “One good bit of news from this,” explains Osofsky, “is that you are not financially responsible for any debts the deceased may have accumulated.” To emphasize, all debts, taxes, legal fees, and administrative costs should be paid from the estate of the deceased, not from your own pocket. If you have advanced any such costs, you are usually entitled to claim a refund from the estate.

But the responsibilities of an executor can often be accomplished more efficiently with the help of a knowledgeable Elder Law attorney, such as Gene L. Osofsky of the law firm Osofsky & Osofsky. “We receive requests from clients to assist them in handling their responsibilities as an executor, especially when the executor is overwhelmed with grief and not accustomed to some of the required duties,” Osofsky explains, “If you find yourself in this situation, seek out an attorney knowledgeable in this process.” It will ease your burden, give you peace of mind, and may prevent needless family squabbles.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Nursing Home Residents Won’t Be Affected by Medi-Cal Budget Cuts

According to Elder Law attorney Gene L. Osofsky, of the law firm Osofsky & Osofsky, the fear factor is high among Californians that many of our Elders in nursing homes may be directly impacted by Medi-Cal budget cuts. While this isn’t true, for Elders not living in nursing homes the story might play out quite differently.
July 28, 2009, was the day when embattled California Governor Arnold Schwarzenegger signed the new budget into law. “Like most states, California has been greatly affected by the serious recession that began in late 2007,” says Elder Law attorney Gene L. Osofsky of the law firm Osofsky & Osofsky, “and budget cuts to programs serving our Elders have not been immune.” Consequently, fears from Osofsky’s clients and colleagues about how residents of California nursing homes might fare in Governor Schwarzenegger’s controversial budget have fueled rampant speculation. Many California nursing home residents rely significantly if not primarily upon Medi-Cal to help pay for their care. But there is good news to be found. “Residents of California nursing homes won’t have their Medi-Cal subsidies for ancillary services such as dental and podiatric care directly affected,” explains Osofsky, “Although the budget cuts made to close the $26 billion gap will have a tremendous effect upon Medi-Cal programs for persons not residing in nursing homes, upon child welfare programs, AIDS prevention, adult day care, and low cost health insurance for low income children.”

Specifically, Medi-Cal funding to skilled nursing facilities has been penciled in at $96.4 million in the Governor’s budget, but a raft of caveats have been included in the budget as a whole. “There will be a reduction of $60.5 million in Medi-Cal county administration, and also a reduction of $47.9 million in the funding for private hospitals,” Osofsky says, “as well as limiting services to a maximum of three days per weeks – at a savings of $28.1 million – for adult day health care.”

These austerity measures are likely to adversely affect many Californians who may be Elders both directly and indirectly, depending upon their circumstances. “A few years from now, the ripples from these recession-beating budgetary maneuvers may prove more far-reaching than anyone first anticipated,” Osofsky concludes.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Living Will Hyperbole Is Disingenuous to American Elders

In the so-called “town hall” meetings debating the Obama Administration’s controversial health care reform plan, shrill cries of “euthanizing old people” to characterize potentially productive doctor-patient conversations concerning end-of-life issues have distorted the discourse and may cause real harm.

The debate about health care reform, especially as it pertains to end-of-life issues, is becoming increasingly contentious in so-called “town hall” meetings across America. Various political luminaries such as former Vice-Presidential candidate and resigned Alaska governor Sarah Palin have been saying some things bristling with emotionally charged phrases. Palin released the following statement on her FaceBook page:

“The America I know and love is not one in which my parents or my baby with Down’s syndrome will have to stand in front of Obama’s ‘death panel’ so his bureaucrats can decide based on a subjective judgment of their ‘level of productivity in society’ whether they are worthy of health care,” Palin says, “Such a system is downright evil.” Palin continued, “Health care by definition involves life and death decisions. Human rights and human dignity must be at the center of any health care discussion.” Palin claimed that the Orwellian Obama plan would surreptitiously herd elder Americans into euthanasia and assisted suicide via rationing of medical treatment.

But does President Obama’s health care reform initiative really do what she claims? In fact, the plan, although controversial, encourages potentially productive doctor-patient conversations concerning end-of-life issues which may indeed be relevant to most anyone. The proposal’s language was designed to encourage doctor-patient conversations, but it was taken out of context and distorted beyond recognition for political advantage. In fact, a Living Will is good for individuals, and good for the country. It gives people essential choices about how they choose to end their days. It puts Americans in control of their destiny. Most attorneys already discuss these issues with their clients when preparing estate plans. Doctors often have these discussions now with their patients. The proposed health care reform bill will now enable the doctor to be paid for spending the time to help patients think through these important decisions. When the President’s mere mention of living wills used as a fear tactic to senselessly frighten our elders , the tactic is not only dangerously disingenuous, but may actually cause real harm. It may discourage essential conversations between doctor and patient. Proactive Elder Law attorneys continue to encourage their clients to create a Living Will or an Advance Health Care Directive – before it’s too late. Under the plan, doctors and their patients will now be encouraged to have this conversation, as well.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Family Fireworks: When a Last Will and Testament Becomes Contested

Even the most congenial of families can fight like wolverines when a Last Will and Testament is contested. For this to happen, they don’t have to be from Michigan.

A Last Will and Testament is a legal declaration by which a person names one or more people to manage their estate and provides for the transfer of property upon death.

Death is inevitable. But a careful choice in selecting an executor is seldom a given, especially where property and money are involved. During life, families may seem to get along fine, but the mixture of the death of a loved one, considerable property to be disbursed, and an executor who seems unfair or biased -- can be a recipe for conflict. The living, prior to their passing, don’t always write out their wishes in clear and concise ways. If there is uncertainty in a family about what might occur upon the death of a patriarch or matriarch, for instance, the atmosphere following death can become an emotional war zone.

Family dynamics can disintegrate into shouting and resentment. Such family “fireworks” have little to do with the 4th of July, and can have long-lasting impact upon family relationships. Seemingly devoted family members fighting like wolverines don’t require an alumni card from the University of Michigan.
Unresolved disputes can result in a will contest. That contest can take on a life of its own, with potentially grim consequences for family harmony. Emotion often outshines logic in these contests. Where disputes occur, the litigation process can stretch out seemingly forever and become very expensive. For this reason, when preparing your Last Will, serious thought should be given to the selection of the best person to serve as one’s executor.

The best executor is one that approaches his or her duties professionally, with tact, with due regard for family dynamics, and with professional guidance from a knowledgeable attorney. If a will contest nevertheless does occur, at least it should then be grounded in a semblance of law and fair play. For this reason, it is important to choose the best person to serve. If you or someone you love is named as an executor, it is imperative that you engage a knowledgeable attorney early on in the probate process in order to help manage the proceedings, mediate expectations, lend assistance and guidance to the executor, and hopefully minimize family friction. By doing so, you just might preserve the very loving family of which the deceased was so fond.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.