Jan Neal Law Firm, LLC

Alabama Estate, Elder and Special Needs Law


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Appointing an Agent for Disposal of Remains in Alabama

It is interesting that people create wills routinely to dispose of their property after death, but seldom consider documenting their desires for burial, cremation or other ceremonial issues.  When prepaid burial plans are not purchased, next of kin usually make those decisions.  But what about the blended family situation where there are children, step-children and later in life spouses?  Each person needs to ask who he or she would want making those arrangements.

Often a later in life marriage is entered with an understanding between the parties that each will be buried beside their first spouse.  Usually that presents no problem, but sometimes over time the wishes of individual members of the blended family change.  Documentation of individual choices is useful in those situations to prevent disputes among the surviving family members.

Alabama law allows the inclusion of burial or cremation wishes in a last will and testament, but such arrangements have limited practical value when considering the immediate need to make arrangements for disposition.  Sometimes the will is not located until weeks or months following death.

Of perhaps more use is an affidavit permitted by Alabama Code § 34-13-11 which allows a person to appoint an adult to be the authorizing agent who can control the location and manner of disposition.  That document will control unless a person dies while on active duty in any branch of the United States Armed Forces, United States Reserve Forces, or National Guard, whereupon the person listed on the emergency data for the Department of Defense will have authority to control the disposition of remains.

While I do not normally provide form documents, the affidavit authorized under Code of Alabama § 34-13-11 is very simple and straightforward, and I am providing here a copy of the statutory form:

                                    Affidavit Concerning Disposition of my Remains

 

State of Alabama

County of _______________

I, (name) ____________________ designate (person selected) __________________ to control the disposition of my remains upon my death. I

__ have

__ have not

attached specific directions concerning the disposition of my remains. If specific directions are attached, the designee shall substantially comply with those directions, provided the directions are lawful and there are sufficient resources in my estate to carry out those directions.

Subscribed and sworn to before me this __ day of the month of ___________ in the year _______.

____________________________ (signature of person creating the affidavit)

______________________________ (signature of notary public)”

Without an affidavit the following surviving people, listed in priority, will have the authority to make burial arrangement:

  1. The spouse,
  2. A majority of the decedent’s children,
  3. The decedent’s parents,
  4. A majority of the decedent’s siblings,
  5. The decedent’s grandparents,
  6. The decedent’s legal guardian at the time of his or her death,
  7. The Personal Representative (executor) of the decedent’s estate,
  8. The next of kin for inheritance purposes,
  9. A public officer, administrator, or employee of the government; or
  10. Any person willing to assume the responsibility, in the absence of all of the people listed above.

It is not a bad idea to think about what you want, who you want to make arrangements and prepare an Affidavit Concerning Disposition of Remains as part of estate planning.  You can add additional instructions to the affidavit while designating an agent and rest assured your wishes will be followed.

 

 


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Beware Caregiver Expense Reimbursement

Caregiver Consoling Senior Woman

I am frequently asked if a parent can reimburse a child or other individual for expenses paid for the benefit of the parent during the spend down phase preceding application for Medicaid without running into problems with Medicaid.  In short, the answer is no unless there is evidence of a debt incurred in the form of a written agreement, promissory note, etc., for which the payment is made.  This is a harsh and difficult position for many caregivers who do not think twice of paying moving expenses, deposits, medical expenses, etc., for a parent only to find that later they cannot be reimbursed because they did not make a formal agreement.

A New York appellate court case recently confirmed this application of the Medicaid regulations by allowing a penalty to be imposed on the transfer of assets to a caregiver daughter without presenting a written agreement to evidence the debt.  Matter of Krajewski v. Zucker (N.Y. Sup. Ct., App. Div., 3rd Dept., No. 522888, Dec. 8, 2016).

In that case Jessie Krajewski lived with her daughter for two years before entering a nursing home. Ms. Krajewski’s husband withdrew money from their joint bank account to reimburse the daughter for her caregiving expenses. After Ms. Krajewski entered the nursing home, she applied for Medicaid. The state imposed a penalty period based, in part, on the transfers made to her daughter.

Ms. Krajewski appealed, arguing that because the transfers were made to reimburse her daughter for her care, the payments were not made in order to qualify for Medicaid. After a hearing, the state upheld the penalty period, and Ms. Krajewski appealed her case in court.

The N.Y. Supreme Court, Appellate Division, affirmed the agency decision, holding that Ms. Krajewski did not rebut the presumption that the transfers were made in order to qualify for Medicaid. The court found that there was no evidence of a written agreement between Ms. Krajewski and her daughter and the only evidence consisted of handwritten summaries of Ms. Krajewski’s living expenses, which was not enough to rebut the presumption.

The lesson to take from this case is that when a caregiver pays expenses for a person who will be applying for Medicaid, it is essential to have written proof of the debt before reimbursing the caregiver for those expenses.  While this is a general rule for transfer of money to a caregiver, be aware of the fact that in Alabama more requirements need to be met to reimburse a family caregiver for actual care provided.  If you want to establish such an arrangement it is important to seek legal advice first.


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Case Study: The Value of Medicare Open Enrollment Plan Comparisons

medical technology concepts illustration designThe importance of Medicare plan comparisons during Open Enrollment are published everywhere you look, but sometimes I think that those warnings go unheeded because folks just do not understand how drastically coverage by the same plan can change year to year.

I saw up close and personal how beneficial the SHIP program is and the importance of Open Enrollment this week.  A gentleman we will call Mr. A came to a State Health Insurance Assistance Program (SHIP) Open Enrollment event in the South Central Alabama Development Commission region.  He drove 20 miles to check out his coverage because he was unsure of whether he needed to keep or change his Medicare Part D prescription drug plan (PDP) for 2017.  He opted to do the safe thing and  check it out.  Thank goodness he did.

Mr. A’s prescription drug plan for 2016 had a zero premium and covered his 10 medications prescribed by his doctor.  That all worked out well, and during 2016 Mr. A’s total out of pocket expenses related to his prescription drug plan totaled $542.00.  This was a manageable arrangement for him.

When a comparison of plans was run Mr. A was shocked to learn that his 2016 prescription drug plan would have a premium of $26.80,  a deductible of $400.00, and his 10 medications had been reconfigured on the plan formulary resulting in 2 of his medications no longer being covered and 3 of his medications reclassified as Tier 3 medications, meaning that his copayments would be higher. In all, Mr. A would have had to pay $3276.00 in out of pocket expenses related to his prescription drug plan during 2017 if he made no changes in coverage.

The comparison provided Mr. A with several options, and he selected a plan that would result in $360.00 in total out of pocket expenses for 2017, saving him $2916.00 over what he would have had to pay if he had not had a comparison run.

While Medicare enrollees can run their own comparisons, they will need to use the online plan finder provided by Medicare.  Comparisons are performed free and counseling provided through the SHIP program funded through the Alabama Aging and Disability Resource Centers.  To learn more call 1-800-AGE-LINE.


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Social Security and Medicare Solvency

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I watched the debate last night and was particularly interested in the segment concerning Social Security and Medicare.  I was disturbed to hear the prophecy of doom posed to the candidates by this question:

WALLACE: “All right. The one last area I want to get into with you in this debate is the fact that the biggest driver of our debt is entitlements, which is 60 percent of all federal spending. Now, the Committee for federal — a Responsible Federal Budget has looked at both of your plans and they say neither of you has a serious plan that is going to solve the fact that Medicare’s going to run out of money in the 2020s, Social Security is going to run out of money in the 2030s, and at that time, recipients are going to take huge cuts in their benefits.

So, in effect, the final question I want to ask you in this regard is — and let me start with you, Mr. Trump, would President Trump make a deal to save Medicare and Social Security that included both tax increases and benefit cuts, in effect, a grand bargain on entitlements?”

Candidate responses and proposals can be found at The New York Times transcript of the debate.

Wanting to know the truth about Social Security and Medicare solvency,  I went looking and found the reports.  The Social Security forecast can be read at the 2016 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.  And the Medicare forecast can be read at the 2016 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds.

The best summary of these reports I have read can be found at Forbes who says:

Social Security isn’t running out of money, and it is not going bankrupt, but the program will face a shortfall in 2034.

The Trustees now predict Medicare will exhaust its reserves by 2028, two years sooner than last year’s estimate.

There are manageable solutions to these problems, but action does need to be taken.

The full Forbes article can be read here.

Aging related issues and the relative positions of the presidential candidates can be read at Next Avenue, a web site produced by PBS.


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Elder Law Training at OLLI

olli-materials-first-page

On October 10, 2016, Jan taught the first of a two part presentation on Elder Law at  Osher Lifelong Learning Institute (OLLI) at Auburn University entitled Elder Law:  Enhancing the Lives of Seniors Through Education, Planning For What Comes Next.  The second session will be taught on Monday, October 17, 2016, at 2:30 p.m. at The Clarion in Auburn, Alabama.  

Topics covered in this training include:  Older Americans Act Legal Assistance; Important Documents Needed for Proper Planning; Authority Issues; Long-term Care Levels of Care and Payment Options; Medicaid for Long-term Care; Special Needs Planning; Probate; Administration of Estates; Planning for Last Remains and Funerals.

A 39 page Keynote presentation covering these topics is provided to course participants.

Anyone interested in this and the many other learning opportunities available through OLLI can learn more by visiting the OLLI website.


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Nursing Home Residents Win Back Right to Sue

shutterstock_236328151According to ElderLaw Answers:

In recent years, nursing homes have increasingly asked — or forced — patients and their families to sign arbitration agreements prior to admission. By signing these agreements, patients or family members give up their right to sue if they believe the nursing home was responsible for injuries or the patient’s death.

Now, in an unexpected move, the federal Centers for Medicare and Medicaid Services (CMS) is forbidding nursing homes from entering into binding arbitration agreements with a resident or their representative before a dispute arises. The agency has issued a final rule prohibiting so-called pre-dispute arbitration agreements in facilities that accept Medicare and Medicaid patients, affecting 1.5 million nursing home residents. After a dispute arises, the resident and the long-term care facility could still voluntarily enter into a binding arbitration agreement if both parties agree.

For years, patient advocates have contended that those seeking admission to a nursing home are in no position to make a determination about giving up their right to sue. Families are focused on the quality of care, and forcing them to choose between care quality and forgoing their legal rights is unjust, the advocates said. Courts have sometimes struck down arbitration agreements as unfair, but others have upheld them.

“Clauses embedded in the fine print of nursing home admissions contracts have pushed disputes about safety and the quality of care out of public view,” the New York Times wrote in its coverage. “With its decision, [CMS] has restored a fundamental right of millions of elderly Americans across the country: their day in court.”

The nursing home industry has countered that the new rule will trigger more lawsuits that could increase costs and force some homes to close. Mark Parkinson, the president and chief executive of the American Health Care Association, said that the change “clearly exceeds” CMS’s statutory authority.

Although the rule could be challenged in court, for now it is scheduled to take effect on November 28, 2016, and will affect only future nursing home admissions. Pre-existing arbitration agreements will still be enforceable.

 


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Social Security and Medicare Online Accounts

Some people are very proficient with online activity, and, for those who are, it is a good idea to establish online accounts for Medicare and Social Security.  Not only can Medicare beneficiaries obtain a great deal of information without sitting on the telephone waiting at the 1-800 number, online accounts provide easy access to caregivers short and long-distance.

To create an account at Medicare go to myMedicare.gov and for Social Security go to  www.ssa.gov/myaccount.

Some of the useful things a person can do with an online account include the following:

• Personalized Medicare benefits and services

• View Claims Information (access and print Medicare Summary Notices)

• Keep up with deductibles

• Learn about your providers

• Keep up with drug lists

• Download personal information with Blue Button

• Replace a Medicare card

• Change Direct Deposit

• Find out if you qualify for benefits

• Obtain verification of benefits

• Apply for benefits

• Appeal a decision


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Elder Law at OLLI

Jan is teaching a two part course on Elder Law at Osher Lifelong Learning Institute at Auburn University (OLLI at Auburn).  See page 11 of the OLLI Spring 2016 catalog for the course description.  The first session is Wednesday, March 30, 2016, from 10:15 a.m. – 11:45 a.m., and the second will be on Wednesday, April 6, 2016, from 10:15 a.m. – 11:45 a.m.  Topics to be covered include Older Americans Act Legal Assistance, Authority Issues and Advance Directive Options, Long-Term Care Planning, Long-Term Care Payment Options Including Medicaid, Special Needs Planning, Probate, Administration of Estates and Funeral Planning.  If you aren’t a member of OLLI, check out all the benefits and learning opportunities here.

Materials for the training can be downloaded at elder-law-training-for-olli-at-auburn-033016-60244085 and will be posted at this site soon.


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Welcome

Welcome to Jan Neal Law Firm LLC, located at 207 N. 4th Street, Opelika, Alabama 36801 where you can find the latest news concerning Probate, Elder and Special Needs Law in Alabama.  Contact Jan at 334-745-2779 or toll free 1-800-270-7635 or email her at neal@janneallaw.com, jbneal@icloud.com, jbneal@me.com.

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Alabama Benefit Checklist

This is a booklet recently published for The South Central Alabama Development Commission as a resource for that agency’s State Health Insurance Counseling (SHIP) program. It will be kept updated as eligibility numbers change and can be found and downloaded at Slideshare.