Massachusetts Estate Planning & Asset Protection Blog

The High Cost of Seniors Living Longer

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Fri, Sep 05, 2014


The Cost of Living Longer | Massachusetts Eldercare Attorney


 planning, estate, eldercare


A Pachyderm of Problems

Every day, we see clients for whom long-term care is the elephant in the room. They feel they can’t afford the costs, but they also feel they can’t afford not to have it either. So their solution is to pretend they don’t see the elephant and try to ignore the problem until it goes away on its own. This unfortunately often leads to our metaphorical elephant trampling their life savings and any future inheritance they are trying to leave behind. The older you are, the more expensive a long-term care policy gets and if you get sick before you have long-term care protection in place, it’s too late. Insurance companies are looking out for their bottom line, and an already ill senior will scare them off.

The costs for these policies are rising faster than inflation too. Therein lies the conundrum for Boomers and seniors: They’re living longer than their parents did but that means they need more money to make it through “old age”. Finding long-term care is a tough and complicated process. You’ll need to find a place that cares for people with your (or your loved one’s) circumstances. You need to find a place with the right facilities and staff, a place that leaves you with a good, safe feeling. And you have to be able to afford it too. This is not any sort of one-size-fits-all situation. Everyone has their own specific services and conditions that they or their loved ones will need met. Remember, what we call “long-term care” is a broad category, with options ranging from live-in facilities to your own home.

Lurking Complications With Long Term Care

The greatest threat to the financial security of Boomers and seniors is the cost of long-term care (and Obamacare will not assist with this). Assisted-living facilities are now climbing toward the $7,500-a-month mark. Many have started bundling more services together, rather than charging for each individually. Bundling might be a good idea from the nursing home’s perspective, but just like pre-packaged cable TV you will wind up paying for a lot of services you don’t need and don’t want. A private room at a nursing home will range from $500 - $600 a day.

The cost of home healthcare is rising, too. Some people choose independent-living apartments. These facilities typically don’t require lump-sum payments, and residents can contract with home health-services independently. Medicaid may be there for those who qualify but if you ever want to learn the true meaning of “jumping through hoops” just try qualifying! The best thing, of course, is long-term care insurance, but that’s getting more expensive too as companies raise their rates while cutting back on their coverage. In addition, this insurance is getting more complicated, now encompassing aspects such as protection of the surviving spouse, caregiver issues, scams/ID theft, and making sure you have an advocate to fight for your rights in a system that’s slanted against you.

In short, we’re living longer, and unlike previous generations, people are generally not living with or even near their children. Seniors are going to need more money for this longer life and for any unforeseen medical problems that may arise.

A Magic Trick No One Wants to See

Do you know the fastest way for a Boomer or senior couple to become an impoverished Boomer or senior couple is? Simple, one of them just needs to become ill before they get long-term care insurance. We see it every day, people who’ve worked hard and saved money all their lives are forced to see it wash away in a flood of medical bills as they age. It is truly heart-breaking, because, if you’ve managed to squirrel some money away, you could probably have afforded long-term care. 

The Downside to Living Longer

Our life expectancies are going up these days and so is the cost of healthcare, the distance seniors are living from their children and families, and the financial pressures on Medicare and Medicaid. The new Affordable Care Act, in fact, stipulates $500 billion in Medicare cuts over the next decade! Where do you turn if you or your spouse gets ill? Home health care? Adult day-care? Assisted-living? A nursing facility? Respite-care services, which allow the caregiver to drop off the senior for a limited period? Who’s going to pay for it? And for how long?  These are the questions to ask now, while you still have time to plan. If you haven’t purchased long-term care before you or your spouse become ill…forget about it. No one will insure you once you’re sick! If this happens to you, you’re going to be out of time, out of options, and very quickly out of money. And if you’ve planned to leave something for your heirs, there may be nothing left to leave to them other than a pile of bills. 


It’s an old (but true) cliché: those who fail to plan, are planning to fail. When it comes to healthcare expenses as you age, you fail to plan at the risk of yourself and those you love.  


At the Estate Planning & Asset Protection Law Center, we provide a unique education and counseling process which includes our unique 19 Point Trust, Estate and Asset Protection Review to help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones, click here for more information. We provide clients with a unique approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

Click Here to Register For Our Trust, Estate & Asset  Protection Workshop 


Tags: asset protection, long term care, Medicaid, MassHealth, life-care plan, in-home care, in-home care, Estate Planning, Estate Planning, assisted living, seniors, Massacusetts Estate Tax, living will, surviving spouse, marriage, home, in home, incapacity, Estate Planning Tip, Massachusetts, asset, Estate Planning Recommendations, long term care insurance, life insurance, hospice, assets, Inheritance

Estate and Long Term Care Planning for Women

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Mon, Aug 18, 2014


The Unique Challenges in Women Face with Estate Planning

Estate planning for women

Estate and Long Term Care Planning for Women can be different and full of confusing choices. Women are living longer today than ever before, and you will need an estate plan that can protect you from the new challenges arising daily. Let’s look at some of the more common situations below:

Married women tend to be younger than their husbands and tend to be on their own once their husband passes. Many married women let their husbands do all the financial planning, including their estate planning. Unfortunately this leaves many of them confused, or even blindsided by the oncoming costs that can appear with their estate and long term care options. Second marriages can create a whole new set of issues to deal with as well. Children from both marriages must be accounted for and must know what their responsibilities are going to be as well as fairly dividing their inheritance. For your own sake it would be best if you chose exactly who you would want to have power of attorney as well as whom you wish to have as your healthcare proxy. It is also important to update these documents regularly as many institutions do not accept them if they are more than a year old.

Single or childless women may choose to leave their possessions to close friends, relatives or charities. Without a good, up-to-date estate plan however, that won’t happen. Instead a bureaucrat appointed by the state will decide where your worldly goods will go when you’re gone. And for women living with a partner whom they are not legally married to, their partner won’t see one red cent of your estate unless you have an ironclad estate plan stipulating who gets what.

Your documents cannot do you much good unless they have been updated to reflect your current needs and situation. If you have gone through a separation or divorce you probably do not wish for your former partner to inherit your things or be making medical decisions about you. We have seen many cases where this has happened, and it is too late to change anything. Fortunately situations like this can be avoided by simply updating your documents regularly. At the Estate Planning & Asset Protection Law Center of Dennis Sullivan & Associates we provide clients with a unique Lifetime Protection Program to help keep their documents and plans up to date with any changes in their personal, family and health situations.

You must also consider what will happen if you require long term care and make sure there is going to adequate funding for what you may need in the future. Many people have made the mistake of giving away their savings in order to qualify for Medicaid without consulting a professional first. Not only was this unnecessary, they often still do not qualify because they did not plan for their situation ahead of time. Giving away their assets can even create large penalties if you ever need a nursing home. To learn more about some of the other mistakes to watch out for take a look at The Ten Biggest Estate and Asset Protection Mistakes People Make and How to Avoid Them! For a free report based on the book click here.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.


Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: asset protection, long term care, Nursing Homes, Estate Planning, Elder Law, assisted living, health care proxy, elder care, surviving spouse, coverage, marriage, death benefit, Charitable Giving, Beneficiary, estate, Estate Planning Recommendations, assets

Estate Planning for the Blended Family

Posted by Dennis Sullivan & Associates on Fri, May 20, 2011

There is an unfortunate myth that some people still believe about estate planning. Some people think that with the federal estate tax exemption at $5 million for a single person and $10 million for a married couple, they are “out of the woods” in terms of federal estate taxes and so do not need an estate plan.

That is a myth. Even if you don’t have estate taxes to worry about (now), you could have plenty of estate issues to deal with – especially if you are part of a Blended Family. The Chicago Tribune recently highlighted just a few of the “wrinkles” that could complicate estate planning for those in second marriages.

Consider a few of the potential complications:

  • Non-Citizen Spouse – Let’s say you have children from a previous marriage, and you marry someone who isn’t a U.S. citizen. Beyond the “traditional” hurdles regarding estate taxes and non-citizens, you may have to deal with another complication. What if your non-citizen spouse leaves the country? What will happen to the estate assets you had intended to leave to your children? Consider a qualified domestic trust with an independent trustee overseeing the assets.
  • Much Younger Spouse – Another type of trust often used in second-marriage situations is a qualified terminable interest trust (also known as a QTIP), which allows a spouse to receive income and distributions from a trust until their death, when the remainder goes to other heirs. But, if your spouse is much younger than you, that could be a very long time, and the underlying assets of the trust could be exhausted – leaving nothing for your children. In these situations, you may want to consider properly owned life insurance with your children as beneficiaries.

These are just two of the many ways that life can complicate your estate planning needs, regardless the state of the estate tax. To learn more about fundamental estate planning, sign up for a free Trust, Estate and Asset Protection Workshop, and be sure to subscribe to our free monthly estate planning newsletter.

Tags: Estate Planning, estate tax, family, marriage

Estate Planning for "Non-Traditional" Couples

Posted by Dennis Sullivan & Associates on Fri, May 13, 2011

 Unmarried heterosexual couples and same-sex couples are a growing part of our population, and with them, the growing controversy over their legal rights as couples. If the government doesn't recognize a relationship, taxes, estate planning, buying property, and dividing assets after a breakup all get messier—and pricier.

And, as Bloomberg Businessweek recently pointed out, the number of unmarried, cohabiting couples has surged, meaning millions more Americans, gay and straight, are facing these issues. The U.S. Census Bureau estimates 7.5 million heterosexual couples and 620,000 same-sex couples lived together in 2010, compared with 6.7 million heterosexual couples and 476,000 same-sex couples in 2009.

The lack of a legally recognized union or marriage has always been a problem in the event of dispute or estate transfer. But with new laws and court rulings increasingly recognizing the rights of live-in couples, rapid change is also making the legal and financial status of couples more confusing.

"It's a changing area of the law,” according to Linda Lea Viken, attorney and president of the American Academy of Matrimonial Lawyers. “ Some places are becoming more hostile to same-sex relationships. Others are becoming more liberal."

This is especially important for same-sex couples, and estate planning is one of the thorniest issues. There are many tax advantages enjoyed by married couples, which simply are not available to those whose unions are not legally recognized. And, even if you are “legally married” in one state, don’t think your problems are solved. You can still face difficulties, especially if you move to a state that does not recognize your marriage.

Whether gay or straight, non-traditional couples need to take a serious look at the legal and economic realities they face - like custody issues or holding on to your home.

To learn more about protecting your home, spouse, family and life savings, attend a free educational Trust, Estate & Asset Protection Workshop . Register online or call 800-964-4295.

Tags: Estate Planning, marriage, same-sex, non-married, non-traditional

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