Elder Abuse Revisited: Only One Percent

Elder abuse is a heinous crime which we feel a need to continuously make our readers aware of, and the resources available to combat it. For our earlier post on this topic, click here.

Today's post focuses on an article from the Anderson Valley Post which reported an increase in elder abuse due in part to strains in the economy.

When Connie Matajcich, 73, of Anderson, California was recovering from a stroke, her caretakers convinced her to take on a reverse mortgage. (The full story can be found here). She alleges that the profits from that mortgage were taken from her.

Even more shocking, her caretakers were not strangers, but her daughter and son-in-law.

Ms. Matajcich did not want to contact the authorities, and intitally she felt bad for doing so. However, she found help through the local chapter of Adult Protective Services. The agency connected her with a case worker who put her in touch with social services she needed and encouraged her to report the case to authorities.

According to Jim Livingston of the Adult Protective Services of Shasta County,

Only one in a hundred elder abuse cases are ever reported.

There are services those facing instances of elder abuse, and no one should remain silent due to embaressment or humiliation. Elder abuse is a crime. Social service agencies all over California work daily to prevent abuse and provide assistance to those who have suffered from it.

For more information, visit the National Adult Protective Services Association.

Unbundled Legal Services

As this article from the New York Times points out, defending yourself in court without a lawyer can be very challenging.

Courthouse workers also say that people are representing themselves in more complicated cases, involving divisions of complex assets, home foreclosures, houses worth less than a mortgage balance and combinations of these and other problems. Such cases in the past were more likely to involve a lawyer.

These are tough times for many Americans, whether they are facing foreclosure, bankruptcy, divorce, and many other adversarial legal issue. It's no surprise that due to the economy, many folks are deciding to go without legal representation.

I'm not going to rattle on about how and why going alone to court without a lawyer is a bad idea. In some cases, it's perfectly fine to fly solo, and people need to do what they need to in these difficult times.

One thing many attorneys have started to do is to offer what is known as unbundled legal services. This occurs where the client and the attorney work together to define the scope of the representation. Typically, the client pays a reduced rate and the attorney does a fraction of the usual representation for a certain legal issue.

For example, in a divorce case, the attorney may provide the client with the pre-filed forms and/or required documents which the client needs to go to court and represent herself or himself. The attorney will limit the scope of his or her representation to a set area, which may include advice, document review, or negotiation, in addition to document preparation.

Unbundled legal services are the future for certain law practice areas. It provides competent legal advice to clients who don't need (or want) full legal representation. It also reaches a group of people that are typically ignored by lawyers: regular middle class folks.

Let's face it: the typical lawyer wants to work with those whom he or she can charge the highest hourly rate.

With unbundled legal services, the client gets the assistance they need at a reasonable rate, and the lawyer does not partake in full representation, which can be very time-intensive.

Green Street is pleased to offer unbundled legal representation for those requesting it. We will also suggest it to clients who we think it may be an appropriate for. Go unbundled!

All the Same Mice to Cheese

At Green Street, we actually like mice. But, in the profession of estate planning, it seems there are more and more attorneys acting like mice. These mouse-like attorneys keep running at one very small piece of cheese. That metaphorical small piece of cheese is comprised of the super-wealthy who may be affected by estate taxes.

Who are these people? They are a tiny group that could die in 2009 with more than 3.5 MILLION dollars in assets (for more information about estate tax details, you can find it on Nolo.com by clicking here). Needless to say, more than 98% of Americans won't have to worry about the federal estate tax.

At a time when law firms are reporting record layoffs, Law.com reported today that estate planning departments are actually growing in large law firms. For the full article, click here.

It dawned on me once I started reading, these firms are the mice going for that tiny piece of cheese:

The practice is competitive with other Pillsbury groups in terms of rates -- partners bill $650 and up -- as well as billable hours and realization....

But of course! They're trying to hit up the less than two percent of the population who needs that type of complicated estate planning. Good grief.

If you have your life's work built up in your home, retirement accounts, pensions and other assets, you can get a great estate plan from many attorneys for 3-5K. At Green Street, we provide full-service estate planning for a flat fee with no hourly billing. We can help you avoid probate. All of your documents are presented to you in a binder which is expertly organized. For more information, check out the Estate & Probate section on our website.

We have our blinders on, deliberately ignoring the herd of lawyers who swarm to the elite. We like working with real people, who work hard and want to protect their family and their money. Why is that? Because the other 98% of you deserve a professional, friendly, and quality service without sweating that hourly rate.

Take 2: Grandparents Raising Grandchildren

That's a cute baby. Grandma is cute too!

Most grandparents love to spend time with their grandchildren, but also look forward to returning the little munchkin(s) back to their parents at the end of the day.

For more and more families, however, grandparents are taking on the primary responsibility of raising their grandchildren. An article in the Great Falls Tribune in Montana highlights the story of several grandparents raising their grandchildren. The story can be found here.

The reasons grandparents become the primary caregiver to their grandchildren are many. Typically, it becomes necessary when the parent is unable to provide for the grandchild due to illness, drug abuse, or problems with the law. In most states, grandparents can become the legal guardian or receive custody rights if the child's parents are unwilling or unable to care for them. Adoption may also be an option for grandparents and parents to consider.

A guardianship may become necessary so that the grandparent can supervise where the grandchild lives, be certain they are enrolled in school, and make medical decisions for the grandchild. If the parent(s) of the child determine it's best to relinquish all of their parental rights, grandparents may be able to adopt their grandchildren.

An issue often not addressed is the health and well-being of the grandparent. Most of the time the focus is on what is best for the child, but grandparents need to consider their health as well. For example, grandparents often worry about who will take care of the child if they became seriously ill or disabled. Having a proper estate plan to provide for the grandchild can be very important for these folks.

Finally, if a grandchild has a disability, it may be necessary to set up a Special Needs Trust so that the grandchild can continue to receive federal and state benefits such as Social Security Income (SSI) and Medi-Cal. This type of trust will also allow trust monies to supplement the disabled child's benefits without interfering with public benefits.

To learn more, and for additional resources, please visit Grandparents Raising Grandchildren--Realizing You're Not Alone.

Update: there is a great article about the health and work challenges Grandparents raising Grandchildren are facing during this recession. From the New York Times, it can be found by clicking here.

A Broad Spectrum: Elder Abuse

The News Journal of Wilmington, Delaware recently reported a training session held by the Office of the Attorney General to train to people in myriad fields to detect and prevent elder abuse. In the article, found here, the trainees where instructed in two critical areas:

First we wanted to train everyone in law enforcement to recognize elderly abuse. Second there was public awareness to the types of abuses: physical abuse, sexual abuse, neglect and financial exploitation," White said. [emphasis added]

I emphasize the words recognize and public awareness because they are two of the most critical things which prevent reporting of elder abuse. Elder abuse comes in many forms and is hard to detect. It's not limited to physical abuse--it covers financial abuse, neglect, and psychological abuse, among others.

Only 25 years ago, domestic violence between spouses and between parents and children was highly under-reported. Through public awareness campaigns, stricter laws and enforcement, and better social services to assist battered women and children, domestic violence has been exposed and services to victims have improved. Elder abuse is now coming to the forefront as an area which needs dramatic increase in resources and public awareness.

As our society ages, and the elderly become more dependent physically, mentally, and financially, they become an easy target for all types of deplorable acts. The elderly often have immense wealth from home appreciation and savings, but they often live alone and are isolated. Those with disabilities may be dependent on "home health aides"or neighbors who over time become acquainted with the financial assets of the elderly person. Unfortunately, due to age and/or disability, the elderly frequently fail to take action against the abuser(s) due to their embarrassment or disability.

The National Committee on the Prevention of Elder Abuse (NCPEA) is an excellent resource to learn more about elder abuse. This website outlines the many types of elder abuse, the indicators for each type of abuse, and also directs readers to other avenue of assistance.

End of Life Choices

I was on the road tonight and lucky to be able to listen to one of my favorite shows on NPR: Fresh Air with Terri Gross. The interview was with Dr. Robert Martensen, an ER doctor who recently published a book called A Life Worth Living. In his book,

Martensen presents case studies that illustrate the problems and complexities of American health care system, and argues that safeguarding the quality of a patient's life sometimes trumps the urge to sustain life at all cost.

The full interview with Terri Gross can be heard by clicking here.

One of the most poignant parts of the interview was when Dr. Martensen discussed his father's death. Because his father had signed an advance health care directive indicating he did not want to be put on a ventilator, Dr. Martensen was able to support his father's wishes in his final days. By indicating his desires through the appropriate forms, he was able to end his life the way he wanted, without a ventilator and recieving pain medication which would not inhibit his lucidity.

These are tough decisions for families and individuals to make, and Dr. Martensen's interview informs and empowers us to consider the type of care we want at the end of our lives. Often these choices are never considered--we are embaressed, unsure of what we want, or do not want to think about it.

All of these emotions are understandable, but our lack of decisivness causes considerable anguish for children and family members who are left to decide, not knowing if the decisions they make are what their parent or relative would have wanted.

The California Office of the Attorney General has a great website which explains what an Advance Health Care Directive is, why it is important, and other resources which may help individauls and families consider their options. To learn more, click here.

Tough Times for Commercial Real Estate Owners

With the news primarily focusing on residential real estate and home foreclosures, commercial real estate has taken a back burner. But take a look around your town and you'll notice myriad "For Lease" signs on all kinds of commercial real estate, from the smallest strip mall to enormous sky scrapers. Even on the most populous streets and swanky avenues in Pasadena there are many empty storefronts and with huge banners proclaiming available space for lease.

This article on PR Web predicts a serious crisis for owners of commercial real estate, in which "none of the experts agreed to point on a recovery timeline." Only a few years ago, if a commercial tenant broke their lease, the landlord would be irritated, but there was likely another tenant eager to move in. Not so any more. Now, when a tenat leaves, the commercial landlord may want to hold the tenant accountable for breach of the lease and sue for damages.

Unfortunately, times are tough for the tenants as well. This is why mediation may provide a more amicable outcome for both parties. Most of the time, it will be much less expensive than going through litigation. If both sides are willing to mediate, often a resolution can be reached relatively quickly. In these challenging times, it may be beneficial for the commercial landlord to consider working with an attorney who can represent their interests in mediation.

Infamous Conservatorship

It's not every day that you hear or read about conservatorships in the news.

However, most of us have heard or read about Britney Spears, who unfortunately has been having some serious mental problems as of late. A little over a year ago, after a second psychotic break, a judge set up a conservatorship for Ms. Spears and named her father, Jamie Spears (pictured at left) as the conservator. The full story can be found on the Los Angeles Time's website by clicking here.

If you read the article, you'll note how complicated things can get for the conservator. Seems as though some of those involved with Ms. Spear's case do not feelher father is doing a good enough job as the conservator.

Some people have made careers by becomming professional conservators. These experienced people will handle the potential problems associated with being a conservator. In the Golden State, an organization called Professional Fiduciary Association of California lists hundreds of people throughout the state who are professional conservators.

Name that Beneficiary!

Prevent potential headaches to your heirs. Make sure they are listed as intended beneficiaries on all of your financial accounts which make up your estate plan.

We'll keep it simple with the basics:

• Your will does not always hold water. If you have out-of-date beneficiaries on your financial accounts, such as IRAs, 401Ks and insurance policies, you may have a major problem. Your will does not control these assets, even if you wrote the particular beneficiary out. Bottom line: review your beneficiaries periodically, particularly after a major life event (most commonly death or divorce).
• Name a Runner-Up. In most documents, you may name two beneficiaries, so be sure to fill in the second space. If the first beneficiary should die before you, the asset will go through probate, which is expensive and time-consuming.
• Retirement Plans are Tricky. Enough said. Make sure your estate planning attorney helps you with this one.
  
• Do not Name a Minor as Beneficiary. Should you die before the minor reaches adulthood, the property will likely be probated. Courts have strict rules about how benefits are distributed to minors and will supervise--which means it is costly. A trust may be a better option.
  
• Feel Free to Change Beneficiaries. A simple form is typically all that is required.

Adapted from "Five Things to Know About Naming Beneficiaries" by Ismat Mangla of Money Magazine.

Updating Your Estate Plan

If you have an estate plan, it is good idea to get it reviewed every 3-5 years. Some of the documents of your estate plan may expire over time. Likewise, there may be changes to your family such as a divorce or remarriage, a new child, or a new charitable organization you would like to contribute to at your death. These changes in your family or wealth can dramatically alter how your estate plan should be structured.

Also, the laws are changing all the time. A great article in Money Magazine, titled Keeping Wealth in the Family discusses this topic in more detail.

Many attorneys will look over an estate plan free of charge, then set up a meeting to discuss with you what should be changed and give you a price for completing this task. This would also be a good time to also consider adding additional documents which may not have been part of your original estate plan. These documents could include a health care directive, durable power of attorney, funeral arrangements, etc.

Estate Plannning Basics

Yesterday the New York Times published a great article about Estate Planning. The author posits that while we are comfortable planning for retirement, or what time in our lives we plan to retire, Estate Planning is difficult because it asks us to consider how our assets will be distributed after we die. However, that difficulty makes Estate Planning no less important. Read on:

Estate Planning rarely gets the attention it should get.

By Paul Sullivan

January 26, 2009

Saving for your children’s education, purchasing a second home, deciding when and how to retire — these are all topic that people talk about with their friends and their financial advisers. But deciding what happens to whatever is left of your money when you die is often passed over. It shouldn’t, though, because it is crucial to a financial plan.

But not discussing something that is going to happen will not stop it from happening. And at some point, someone is going to have to sort out your estate — regardless of how big or small it is. Here are some of the key issues that should be addressed:

WILLS Everybody should have a will, and people who are married and/or have dependent children are inexcusably foolish if they do not. There are significant issues that only a will can clarify. One of the biggest is who will take care of the people you love, and how? You may have told your best friend that he will be the guardian of your children if you and your spouse die in a plane crash, but unless you spelled out your wish in a will, there is no guarantee this will happen. If both parents die, it will be up to the state to decide, and they will chose based on family.

If you say this is what you wanted anyway, you’re missing the point. Which parents would you want to raise your children — yours or your spouse’s? Or if it is a sibling, do you care if your children go to the wealthy one in Seattle whom you always fought with or to the financially strapped but loving one in Memphis with two children of his own?

Some may argue that wills are expensive. But there are plenty of online sites to help write a legally binding one for little cost. Two popular destinations are RocketLawyer and LegalZoom.

If you are wondering what will happen to your money if you die without a will, go to mystatewill.com. It shows what happens to your assets in each state if you die without a will. The picture it paints can be scary and may convince the holdouts that paying a fee online or spending $1,000 for an actual lawyer to draft a basic will is well worth it.

LIVING WILLS AND MEDICAL DIRECTIVES Once you have figured out wills, you need to think about what will happen if you are seriously injured or incapacitated. This is the territory of living wills, a legal device that waxes and wanes in popularity. Every few years, there seems to be a high-profile battle over whether to disconnect a loved one from life support. Think Terri Schiavo. And afterward, a bunch of people set up health care proxies and medical directives to express their wishes if they have to go on life support. The same sites for wills can help here, but this is an area where you really want to pay attention to the details. If you followed the Schiavo case and have a strong opinion about a specific treatment — continued life-support or removal of all artificial means of living — then you need to express that in a living will.

SPECIAL-NEEDS TRUSTS Most people with physically or mentally challenged children worry about how their deaths will affect their children. Special-needs trusts are a common and effective way for parents to make sure their children are cared for. By leaving money to a trust and not to their special-needs children, parents can supplement government benefits to their children.

Setting up such a trust is not difficult, but it requires advance thought. The issues involved range from how you will finance the trust — cash, securities, an insurance policy — to who you will designate as the trustee. That person will not only make decisions involving how the money will be spent, but, more crucially, the trustee will evaluate the care the special-needs child is receiving. Here is a good primer on the subject.

ESTATE TAX Most Americans will die without the estate tax affecting them. In 2009, a married couple can leave $7 million to their children tax free.

Those who are affected by the tax are some of the best planners. The problem here, though, is that they do not always make sure that what they wanted to do is laid out properly in their estate documents. Anyone can learn from their slip-ups.

The most common mistake is one of oversight. Anyone who has ever worked at a company that offers benefits has filled out a “beneficiary designation” form. In the stack of papers asking questions, ranging from which health insurance plan is right to how much should go into the company retirement plan each pay period, the beneficiary designation form is remarkably simple: If I die, who gets the corporate benefits package?

Fast forward 25 years, and the lowly assistant who signed that piece of paper is now a top executive. His benefits package has grown substantially over the years. Does he still want to leave it to his mother and brother — or former wife? These forms trump wills when it comes to distributing assets not held jointly. Check them often.

The same goes for people who have set up trusts. Regardless of what the trusts were for or when they were written, they should be reviewed occasionally — preferably by someone not involved with creating them. This isn’t to detect shenanigans, but to check for simple errors that could alter how an estate will be distributed.

As a side note, trusts are no longer the province of the very rich. They have morphed over the years into useful and straightforward vehicles to protect assets in life from creditors and lawsuits and to pass them to heirs on your own terms.

The lesson to be learned from all of this is simple: One day you will die, so while you’re alive, plan for it. If you don’t have a proper estate plan, the emotional pain of your passing could be compounded by financial chaos.