Archive for June, 2009


Long-Distance Caregiving

Monday, June 22nd, 2009

Question - I live in a different city than my parents. Keeping in touch by telephone and making long trips to help my parents with their needs is very time-consuming and not nearly as effective as being available full-time in person. What are my options to make this easier for me but to also make sure they are taken care of.

Oast & Hook Answer - Living in a different city or state, miles from aging parents, can be difficult.

The long-distance caregiver is a new role that is thrust upon children and younger family members. Families used to live closer together, with children residing and working near their parents. But nowadays family members are more distant from each other. Society, today, is recognizing this. Some caregiver services have tweaked their programs to work as liaisons between long-distance caregivers, senior loved ones, and local medical professionals.

Professional care managers, also known as geriatric care managers, elder care managers or aging care managers, represent a growing trend to help full time, employed family caregivers provide care for loved ones. Care managers are expert in assisting caregivers, friends or family members find government-paid and private resources to help with long-term care decisions.

They are professionals who are trained to evaluate and recommend care for the aged. A care manager might be a nurse, social worker, psychologist, or gerontologist who specializes in assessing the abilities and needs of the elderly. Care manger professionals are also becoming extremely popular as the caretaker liaison between long-distance family members and their aging loved ones.

The most important thing is to find a geriatric care manager where your loved one lives. This geriatric care manager will have knowledge of all the services in the area and can be your eyes and ears.

Legacy Letters and Ethical Wills

Monday, June 15th, 2009

A recent Investment News article by Kathleen M. Rehl discussed the value of parents leaving “legacy letters’ for their children and grandchildren to share after the parents are gone. Traditional estate planning is important for everyone, but many people want to focus on more than just property or financial assets. A legacy letter or ethical will is a good addition to an estate plan.

The author described the letter her mother had written shortly before her death. “Please know how important you are to me and how much I love you. Life has been such a fascinating and interesting adventure with you, my family, being a big part of this journey.” She wrote about her values, lessons life taught her, and her love for each member of the family. Ms. Rehl says that “[w]hat she experienced during her 84 years of life was much more valuable than the material stuff she left behind.”

Barry K Baines is the author of “Ethical Wills: Putting Your Values On Paper,” and his website is www.ethicalwill.com. The website includes samples of ethical wills, written by people at various stages of their lives. Theses transition times may include marriage, the birth of a child or grandchild, change of career, retirement, death of a spouse, health challenges or the end of life. People may find that writing these legacy letters can help manage these transition stages better.

Ms. Rehl says that writing a legacy letter not only helps loved ones by communicating the meaning of the author’s life, but is a gift for the writer. “In reflecting upon the past and recording thoughts on paper, writers learn about themselves, ponder what they stand for and have the opportunity to articulate that which is closest to their hearts.” People can write their initial letter and keep it updated each year.

What is Estate Planning?

Friday, June 5th, 2009

Estate planning is the process by which a person plans for the management of his or her assets, affairs and healthcare if he or she becomes disabled or dies. Prior planning produces positive results upon a disability or death. Failing to plan is planning to incur unnecessary problems, delay, taxes and expense.

There is a 58% probability that you will suffer a disability of 90 days or more during your life. It is certain you will die. Failing to plan commonly results in the imposition of default “remedies,” such as guardianships, conservatorships, and intestate succession. These default remedies frequently will not produce the results that you would have chosen. Failing to plan will often result in additional or unnecessary expenses, taxes, and delays.

The AARP reports that only 60% of people over age 50 have wills, 45% of these people have durable powers of attorney, 30% of these people have advance medical directives, and only 23% have living trusts. These statistics indicate that most people fail to make a comprehensive estate plan. And of those who have completed their estate plans, the odds are that they haven’t reviewed their plans in years.

Oast & Hook is Moving

Friday, June 5th, 2009

Oast & Hook will soon move from its current Portsmouth location to the TowneBank Building in downtown Portsmouth. Oast & Hook’s new address will be:

TowneBank Building
200 High Street, Suite 402
Portsmouth, Virginia 23704-3719
Tel: 757-399-7506
Fax: 757-397-1267

You may obtain directions to our new office on our website: www.oasthook.com. The phone number and fax number will remain the same. Please note that our new address will become effective on June 15th.

Please visit Oast & Hook at any one of our offices located throughout Hampton Roads and North Carolina.

Portsmouth Office:
TowneBank Building
200 High Street, Suite 402
Portsmouth, Virginia 23704-3719

Virginia Beach Office:
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294

Elizabeth City office:
101 East Elizabeth Street
Elizabeth City, North Carolina 27909-4353
Tel: 252-722-2890

Suffolk Office:
Coming in 2010

Stimulus Payments for Seniors and Persons with Disabilities

Friday, June 5th, 2009

The American Recovery and Reinvestment Act of 2009 (ARRA or Stimulus Bill) includes a one-time payment of $250 to anyone who received any kind of Social Security benefit, including retirement, survivors and disability benefits, Railroad Retirement or Veterans Administration (VA) disability compensation or pension benefits during November 2008, December 2008, or January 2009. Most people who receive Supplemental Security Income (SSI) will also receive the one-time payment; however, persons in nursing homes who receive a monthly SSI benefit of $30 will not receive the payment. Most payments will go out this month and all should be received by June 4, 2009. Children receiving Social Security benefits who are under the age of 18 (or 19 if still in high school), will not be eligible for the payment; however, adult children who receive disability payment on a parent’s record will receive a payment. Additionally, children who receive SSI will receive a payment.

Eligible recipients will receive a notice regarding the payment. The payment will go to the recipient using the same means as the regular benefit. For example, if the usual monthly benefit is directly deposited to a bank account, the one-time payment will also be directly deposited. If the usual payment arrives by mail, the extra payment will be mailed as well.

If a person is in a nursing home, and the usual monthly benefit is sent to the nursing home, then the one-time payment will be sent to the nursing home as well. According to ARRA, the nursing home must set aside the $250 payment for the nursing home resident to use as the resident sees fit. The law specifically states that “The entire payment shall be used only for the benefit of the individual who is entitled to the payment.” The nursing home is not permitted to keep the funds and apply them toward the resident’s nursing home costs. The Centers for Medicare and Medicaid Services (CMS) has advised nursing home surveyors about the one-time payment and residents’ rights to the payment.

The one-time payment will not count as income for federal, state or local benefits. The amount is also excluded as a resource in the month in which it is received, and for the following nine months without being taken into account for purposes of determining eligibility for Medicaid. If the funds are not spent by the end of the ten month period, then the remaining funds will be counted as a resource. The payment will not count as earnings for Social Security disability benefits. Additionally, the payment also will not count as gross income for income tax purposes.

Pet Trusts

Tuesday, June 2nd, 2009

Oast & Hook is often asked how can a client provide for a pet if the client becomes disabled or dies? Many states have adopted statutes that permit pet owners to establish trusts for the care of pets during the owner’s incapacity or after the owner’s death. Virginia joined these states on July 1, 2006, when Virginia Code § 55-544.08 became effective. This code section is modeled after a similar section of the Uniform Trust Code.

To plan for a disability, the client can include a provision in the client’s general durable power of attorney authorizing an agent to provide for the pet. The client can include a provision in the client’s will to make a gift of the pet and to provide a monetary gift to provide funds for the pet’s care. In Virginia, the client also has the option of creating a pet trust for the pet that appoints a trustee to manage funds for the pet’s care and appoints a caretaker for the pet. The Virginia pet trust statute provides for enforcement of the pet trust’s provisions.