Let’s face it, writing a will and thinking about what will happen to you if you get sick or die is not exactly a cheery subject. The entire field of estate planning is based on some pretty macabre facts of life. But they are facts, whether we want to admit it to ourselves or not. The mental and emotional bars to starting your estate plan aren’t always easily conquered, but you can take steps to alleviate the stress involved.

Tip 1: Focus on people, not things. Much of estate planning is ensuring that your family and loved ones are cared for. Instead of focusing on your death, it can be helpful to center your thoughts on others as you think of how you can make their lives better.

Tip 2: Find comfort. Confronting your own mortality is something mankind has been doing since the dawn of time. You aren’t alone in your fears, and you don’t have to do it alone. Whether you find comfort in the works of philosophers, theologians, counselors or wise friends, there are any number of resources available to help you through your own struggles.

Tip 3: Get advice. What often makes estate planning so hard is the confluence of the emotional resistance and the prospect of having to learn about technical, dry legal concepts. Here again, help is available. Your estate planning attorney can walk you through the process and explain the rather abstract and boring legal concepts in terms that make it much easier to get a handle on.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

While Peter Pan never got old, the inexorable march of time has caught up with many baby boomers, even if they refuse to admit it. According to a new poll, almost 64 percent of people born between 1946 and 1964 do not have a living will or health care proxy. While there is no law that requires anyone to have these documents, the failure to adequately detail their health care desires though a living will or health care proxy may one day come to haunt baby boomers intent on living forever.

The study highlights just how difficult it can be for many people when it comes to facing the prospects of aging and failing health. Many of the people surveyed for the study claimed they feel healthy and active, and thoughts of dying or getting sick are not at the top of their list of ideas to consider. While the commonly heard bon mot of “60 is the new 40” tends to reinforce the idea that boomers don’t need to think about aging, reality is not a slave to popular beliefs.

Living wills allow anyone to dictate what kind of health or medical care they desire. In the event you become incapable of telling your doctors what you want, your living will can stand in for you. A health care proxy or health care power of attorney serves the same purpose, but instead of stating your wishes in writing, you appoint someone you trust to make the choices for you. You can also use both documents to give your health care proxy guidance about what choices to make.

Each state has different requirements when it comes to making living wills or health care powers of attorney. In North Carolina, for example, state statutes provide a standardized form you can use, though you can also use any other document as long as it complies with state requirements.

For help with your living will and power of attorney documents, call us today – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Estate planning often involves more than just planning for yourself, it requires keeping closer ties with your family. With the recent economic downturn, this sometimes means staying so close that you reside under the same roof.

Recent census data shows that there has been a marked increase in the number of multi-generational homes over the past 10 years. In 2000, about 3.7 percent of households were home to family members of two or more generations. By 2010, that number had increased to 5.1 million, an increase of 21 percent. While some of the increase has been caused by economic factors, other factors also come into play. The increase in hispanic families, which traditionally house multiple generations in the same home, is also partially responsible for the rise in extended family households.

The prospect of moving in with parents, or having parents or grandparents move in with you, poses benefits and downsides. Living with multiple generations in the same household requires adjustment by everyone, and periods of stress or conflict aren’t uncommon. However, the potential benefits reach across the generations. Elderly parents can save money and have family members close at hand if medical emergencies arise. Younger couples with young children can benefit by having a grandparent close by when the children need supervision. Many grandparents and parents of adult children also report a greater sense of happiness and fulfillment, especially when they contribute or assist in household needs.

Even families that don’t necessarily live in the same household can benefit from extended family situations. Living close-by to an elderly parent or having an adult parent that spends the weekend can provide a range of benefits to everyone involved.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

The Oct 1 Women’s Only 5k for Breast Cancer, rescue dog stories from 9/11, probate seminars, identity theft, and more – we’ve got a lot going on that’s featured in our newest newsletter!   Click on the icon below to find out what’s new from The Law Offices of Cheryl David.  If you’re interested in receiving our e-newsletter, we encourage you to visit our site, www.cheryldavid.com, and sign up on the right column of our home page.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Long term care (LTC) insurance is just as the name implies:  It covers expenses associated with someone’s care over an extended period of time.  These are expenses that are not covered by a traditional insurance plan.

But is it really worth the cost?  Is paying for it worth the gamble that you will need it?   Here are three reasons why LTC insurance could make sense for you:

It allows you to maintain your standard of living.  You worked hard all your life to save for your retirement.  Without LTC insurance, your assets could be liquidated to pay for your expenses. With nursing home and extended living facility rates soaring, it is likely that even a fairly substantial net worth could dwindle no time. Having LTC insurance in place protects your assets so that they can remain part of your estate and be used as you want during your lifetime.

It takes the burden off your family of having to take care of you.  This is a common scenario for so many families.  When an individual needs long term care and there are no resources available to pay for it, they often have to turn to moving in with a family member so that they can be taken cared for.  This can completely disrupt a household, not to mention putting you in an awkward position.  But what about those people who have nowhere to turn and don’t have a family member with whom they can move in?  Long Term Care insurance can help provide security and stability when these issues arise.

It gives you more choices for where you can reside.  Without LTC insurance, you will only be able to move into places that you can afford.  If you are relying on Medicare, Medicaid, Social Security and other government benefits, your options could be extremely limited.  And who knows if these programs will even be in existence when you need care? Having LTC insurance in place lets you choose exactly where you want to reside, and not have to rely on just a nursing home for your care.   You get to choose where you reside and how you receive care, instead of the choice being made for you.

Long term care insurance takes the worry off of you, and your family, and lets you choose where you want to live.  You’ve planned your whole life for retirement – make LTC insurance a part of that plan.  Our office is ready to help.  Call (336) 547-9999 today to set an appointment with our Certified Financial Planner Linus Whitlock in order to discuss how Long Term Care insurance could work for you.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

This year’s Genworth Financial Cost of Care Survey has been released. The report details the costs of various types of long-term care in each of the 50 states and, not surprisingly, long-term care isn’t getting any cheaper. The survey revealed that:

• Overall, the cost of nursing home care has increased steadily since 2005.
• Between 2010 and 2011 alone, the cost of nursing home care increased 5.1%
• Costs for care in assisted living facilities have shifted because these long-term care facilities are providing a wider range of services in response to consumer demand.

In North Carolina, as in the rest of the country, the numbers are high. The median annual cost for a private room in a North Carolina nursing home is $73,000. For assisted living, the median annual figure is $33,600.

So, what will happen if you need a nursing home, an assisted living facility, or some other form of long-term care during your lifetime? Having a plan for how you’ll cover the costs – whether it’s with your life savings, with long-term care insurance, via Medicaid, or through some combination of these – can help to ease your mind and relieve your family of a potentially huge financial and emotional burden.

If you’d like to explore your options when it comes to preparing for the possibility of long-term care, an elder law attorney can be a valuable resource.  Contact our office to set your appointment with Beverly Eckard, our Elder Law Attorney, or Linus Whitlock, our on-staff Certified Financial Planner.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

There’s no doubt that the cost of long-term care is high and, to make matters worse, it’s on the rise. With the average cost of nursing home care in the U.S. exceeding $70,000, even a substantial nest egg can be wiped out by long-term care costs. This is why an increasing number of people are opting to buy long-term care insurance. So, when is the best time to buy a policy?

Deciding when to invest in long-term care insurance is a balancing act: buy too early, and you may end up with years of wasted premiums before you ever actually need coverage. On the other hand, wait too long, and you could face prohibitively high premiums or even ineligibility for coverage due to your age or the status of your health.

In general, the younger and healthier you are, the lower your premiums will be. However, if you are young and healthy with no need for long-term care in your foreseeable future, paying low premiums for multiple decades may not be the best use of your money. That’s why many experts recommend that you start to take a serious look at long-term care insurance in your 50’s or 60’s; at this point in your life, you are likely to qualify for reasonable premiums, and you’re getting closer to an age at which you might put long-term care coverage to use.

Of course, the timing that’s right for you might be different depending on the status of your health, your family’s medical history, and other factors unique to you. If you’re not sure when or if it makes sense for you to buy long-term care insurance, make an appointment with an experienced provider.  We are fortunate to have a Certified Financial Planner on staff at the Law Offices of Cheryl David.  Our CFP Linus Whitlock can guide you in evaluating your situation and making the right decision.  Call us to set up your free meeting with Linus – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Many different types of facilities fall under the heading of “long term care facilities.” Assisted living facilities and nursing homes are both types of long term care facilities, but the two are radically different and cater to different sets of people.

Assisted Living Facilities

Assisted living facilities are geared toward elderly residents who are generally healthy and able to take care of themselves, but who need some extra help with daily tasks like bathing, dressing, cooking, or remembering to take medications. An assisted living facility is a communal living place that often features planned group activities, transportation, meals, housekeeping, laundry, and private living spaces.

Nursing Homes

Nursing homes, on the other hand, are medical facilities that cater to patients who have significant medical needs and often can’t function independently. They offer a hospital-like setting, with trained nurses or nursing assistants at the facility at all times.  Unlike assisted living facilities, nursing homes offer actual medical care. Nursing home patients have significantly less privacy than do assisted living residents, and it’s not uncommon for a nursing home patient to share a room with another patient.

For more information about choosing and paying for a long term care facility for you or a loved one, you can talk to an experienced elder law attorney.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

The struggle to pay for nursing home care can put a family between a rock and a hard place. According to Met Life’s 2010 Survey of Long Term Care Costs, the average cost of a private room in a North Carolina nursing home is $204 per day – that’s almost $75,000 a year!

For a family that has saved diligently and invested wisely, paying for care out-of-pocket can quickly deplete resources and derail retirement planning and estate planning goals. On the other hand, in order to qualify for Medicaid, an applicant has to fall below certain income and asset requirements. Without careful planning, a similar depletion of assets can occur.

In order to get around Medicaid eligibility rules and keep assets in the family, many people try to give their excess assets to their children or grandchildren before applying for benefits. Due to Medicaid’s five-year “look back” rule, this can be a mistake with serious consequences. Here’s how it works:

When you apply for Medicaid benefits, the program “looks back” a period of five years.  If you made gifts during the five years prior to your application in an effort to reduce your net worth and qualify for Medicaid, then your eligibility for benefits will be delayed. The length of the delay is determined by the value of the assets transferred during the look back period.  North Carolina assesses a one-month delay for every $5,000 worth of assets transferred.

So, if you gifted $50,000 to your son two years before applying for Medicaid, and then you gifted an additional $10,000 to your granddaughter one year before submitting your application, your eligibility to have Medicaid pay for your nursing home care would be delayed by 12 months.

As you can see, Medicaid rules are very specific, and failure to follow them can lead to life-altering consequences for you and your family. The five-year look back rule does not mean that Medicaid planning is not possible. It does mean that your best bet is to plan ahead, and to get the help of an experienced estate planning attorney.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

One unanticipated expense that can drain your savings and put a strain on your family is the cost of long-term care. Not all of us will need nursing home care during our lifetimes, but as Americans live longer, the likelihood of a stay in an assisted living facility, or even the need for a home health aide or adult day care becomes more and more of a reality.

There are three main sources of payment for long-term care:

1. Out of Pocket
2. Long-Term Care Insurance
3. Medicaid

No matter the source, paying for long-term care without jeopardizing your family’s well-being – not to mention your loved ones’ inheritances – requires some careful advance planning.   A helpful first step is to calculate how much different types of care are likely to cost.

It’s also a good idea to discuss long-term care with your estate planning attorney.  We can help you work long-term care costs into your overall retirement and estate plans, and may have helpful suggestions for how to pay for long-term care while preserving your nest egg.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.