One of the duties of an elder law attorney is to stay abreast of all the relevant trends as they are unfolding, and with each passing day the rapid multiplication of the elder population is becoming a bigger and bigger story. Senior citizens represent the fastest growing segment of the society, and in fact, 10,000 new Social Security applicants are stepping forward each and every day. This is expected to continue into the foreseeable future and experts say that the number of senior citizens in the United States will double by the time 2030 rolls around. In addition, people 85 years and older are the fastest-growing group of seniors.

This added longevity is clearly exciting on the one hand because life is precious, yet there is another side to the coin as well. The Alzheimer’s Association recently published a study titled “2010 Alzheimer’s Disease Facts and Figures” and the numbers they have come up with are telling indeed. Some 5.3 million Americans are suffering from Alzheimer’s disease, and 5.1 million of the reported cases involve senior citizens. So this means that one in eight or 13% of all people 65 years of age and older have Alzheimer’s disease. To take it a step further somewhere in the vicinity of 40% of senior citizens termed the “oldest old,” those 85 and up, are victims of Alzheimer’s disease.

To sum it up people are living longer than ever, the senior population is growing rapidly, and the oldest among us are increasing faster than any other group. At the same time, the older you get the more likely it is that you will contract Alzheimer’s disease.

The possible encroachment of Alzheimer’s disease is a reality that we all must face, and the only way to do it intelligently is by making the proper preparations. This is what incapacity planning is all about, and if you do not presently have an incapacity plan in place it would be wise to consult with an experienced elder law attorney who will assist you in making sure that you are prepared for any eventuality.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Things can sometimes move slowly, and when it comes to estate planning this is often the case. Many people put off the exercise for a couple of different reasons. For one, thinking seriously about the time when you will be passing away is not the most pleasant scenario to consider. And in addition, even if you don’t mind facing up to the reality, it is natural to put off things that seem irrelevant until well into the future. Plus, things are always changing, and you may think that if you alter your estate plan you will only have to do it again the next time something changes.

This line of thinking is perfectly understandable but tragically flawed. Estate planning attorneys always try to emphasize the fact that preparing for the end of your life is not a one-time event; it is an ongoing process, and it should be seen as such. This idea that you don’t have to think about creating or updating your estate plan “just yet” is a riverboat gambler’s approach.

Does death send a calling card? Will you get some sort of invitation that gives you plenty of advance notice, letting you know that you might want to go ahead and visit your estate planning attorney? Death often comes suddenly, and short of that serious illness can strike and either leave temporary or permanent incapacitation in its wake and make a trip to your attorney impossible.

The correct approach is to recognize the fact that you will have to update your estate plan when life changes take place. Things like changes in your marital status, new additions to the family, significant changes to your financial status, the death of a loved one, and changes in the marital status of your heirs can create the need for an estate plan update. If you procrastinate you are putting the well being of your family at risk.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

The fact is that more and more people are living past the age of 85, and when you cull the data somewhere in the vicinity of half of the individuals who reach this age suffer from dementia. This affliction can do various types of damage depending on the severity of the case. Sometimes there is moderate memory loss and a difficulty solving complex problems, and in more advanced cases the sufferer can be completely debilitated mentally and physically.

A very significant percentage of people who are over the age of 85 and suffering from dementia can no longer make sound personal, financial and medical decisions. So if you are interested in planning intelligently, you need to confront the very real possibility of at least some degree of mental incapacitation and make the appropriate contingency preparations. Perhaps the most important of these is to select representatives to make decisions in your behalf should you become unable to make them for yourself.

This is typically done through the execution of durable powers of attorney. A general power of attorney is no longer valid should the principal become incapacitated, but a durable power of attorney does indeed remain in effect and this is why it is the ideal incapacity planning vehicle. Since health care decisions and financial decisions require two different areas of expertise, most people execute a medical power of attorney and a financial power of attorney and appoint two different attorneys-in-fact.

If you were to become incapacitated without executing these documents, the court could appoint a guardian to manage your affairs and you could become a ward of the state. Most people would prefer to make their own choices in this regard and select family members to serve these decision making roles, and this is the purpose of the durable power of attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Reverse mortgages can provide you with some liquidity during your retirement years without incurring the risks that are associated with typical refinancing options. To a large extent the name says it all: with a reverse mortgage the bank pays you, you don’t pay the bank.

The lender owns most of the equity when you buy a house, and each month when you pay your mortgage you buy some of that equity. If you get to the point where the table is turned and you own all or most of the equity, you can choose to take out a reverse mortgage and in essence sell some it back a lender.

The Federal Housing Administration backs reverse mortgages that that are formally called Home Equity Conversion Mortgages or HECMs, but you can also obtain reverse mortgages through private lenders. When you refinance your home to obtain liquidity you have to make payments so you must qualify in terms of income and credit scores, and you can be foreclosed upon if you default. With a reverse mortgage you make no payments so no such qualifications are necessary. You simply have to be at least 62 years old and have sufficient equity in your home.

You can receive reverse mortgage payments either in a lump sum, incrementally, or on as an-needed basis in the same manner that you would use a home equity line of credit. Though you can’t default as it were, the loan can be called in if you fail to pay property taxes and/or insurance or if you do not keep the property in adequate condition. When you leave the home either through moving or after your death, the reverse mortgage becomes due. In most cases borrowers or their heirs will choose to sell the house at that point, pay of the reverse mortgage with part of the proceeds, and keep the rest.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

As we have pointed out in this space previously the costs associated with long term care are going through the roof, and this is a major source of concern in the elder law community. The national average charge for a year in an assisted living facility in 2010 went up more than 5% to $39,516. A private room in a nursing home cost an average of $83,585 in the United States in 2010, and this was a 4.6% increase over the previous year. Industry pundits expect these costs to continue to rise, so if you are planning for perhaps twenty or thirty years from now you can expect nursing home costs to be exorbitant.

One way that you can prepare yourself for the possibility of long term care expenses would be to purchase long term care insurance. The premiums are significant, but the younger you are when you obtain the coverage the lower the cost will be.

To determine whether or not you should purchase long term care insurance you need to examine all of the relevant facts. As mentioned above, the cost of a year in a private room in a nursing home is over $83,000 a year and rising. The average stay is two to three years.

Statistics indicate that about 60% of senior citizens will need long term care of some sort, but not all of these folks will be in nursing homes incurring these enormous annual costs. Limited in-home care is much less expensive. So you may not be able to afford to pay for three years in a nursing home out-of-pocket thirty years from now, but you may not have to.

Long term care insurance is an option, and it is something to explore. If you are interested it would be a good idea to obtain some current quotes, determine the cumulative cost, evaluate the risk/reward equation and make an informed decision.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Though it is true that young adults should have a basic estate plan in place, it would be disingenuous to suggest that estate planning is equally relevant to people of all ages. The eventualities of aging become more applicable to you as the years pass, and it is your personal experience that underscores the importance of intelligent planning more poignantly than anything you may read or hear about. As you enter different stages of life you see some of the things that your older family members go through and you recognize the importance of making plans for the future.

Making pragmatic preparations for all contingencies is the prudent course of action, but there are some tricky psychological waters to navigate. As you do the math and scour through the statistics as your retirement approaches you may start to lose sight of the potential that lies in the present. By all means, make proper plans and let your wishes be known. But once you are prepared for death make plans for life, and by all means, think big.

Consider the story of Costa Mesa resident Bill Burke. In 2007 he decided to climb Mount Everest when he was 65-years-old. He made it to within in 100 yards of the summit when he had to turn back due to the feeling that he simply did not have the stamina to make that final push and then return safely back down the mountain. Not to be deterred, he tried it again the next year and had to be airlifted to safety after a bout with pulmonary edema. By this point you would think that he would finally get the message and recognize the fact that he was too old to achieve his objective. Fortunately, Bill Burke didn’t think that way. In 2009 he reached the summit of Mount Everest at 67 years of age, becoming the oldest American to scale the highest mountain in the world.

You may not be a mountaineer, but each and every one of us has a personal Mount Everest to climb, and in many cases there is nothing standing in the way unless you make the personal choice to embrace self-imposed limitations and make age the culprit.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

The way that you choose to approach planning your estate is a personal matter, and there are many who view it as a purely financial exercise. However, when you are evaluating your legacy the human element is probably going to enter your mind even if you would prefer to keep the business and emotional aspects separate from one another. When you are preparing to leave your material assets to your loved ones at the end of your life it is not the same thing as giving a gift. You tend to have that “moment of clarity” when you realize that you will no longer be available to provide your family moral support, guidance, and advice.

You are not alone, however, because this is a universal feeling that dates back to early biblical times. For centuries the response has been to write what is called an ethical will and include it as part of your legacy. This is not a legal document; it is a bequest of the heart, an effort to pass along the moral and spiritual values that have guided you throughout your life. Sharing this with your loved ones at the same time they receive their inheritances can have profound impact and in a very real sense pass the baton of ethical leadership to the next generation.

The value that this type of document can have as a guide for your family is clear, but the purpose of an ethical will extends beyond the altruistic. Writing an ethical will, especially if you do it before you finalize your estate plan, can be important for you as well. As you dig deep inside to externalize your innermost thoughts you may rediscover some perspectives that have lied dormant for a while and experience a catharsis in the process. As you remind your loved ones to remember what’s really important, you hold that thought in your own right as you prepare for the next step along the journey.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

The census figures tell us that the senior population is the fastest growing segment of our society, and this has created the increasing need for elder law specialists who understand the legal issues that our seniors face. Estate planning is clearly something that you need to take seriously as you enter your retirement years and beyond, and of course this is one aspect of elder law.

It could seem on the surface as though nothing could be more simple and straightforward than transferring assets from one person to another, but the fact is that the taxman is standing at the ready to chop those assets in half upon your passing. You have to be prepared, and estate planning attorneys routinely employ strategies that provide the tax efficiency that you need to avoid the federal estate tax levy.

Another estate planning goal for many people is that of probate avoidance, and enabling this is another task that is often undertaken by elder law attorneys. Probate can take a lot of time, leaving your heirs waiting for their inheritances for several months or even years in some cases. It is also expensive, capable of eroding the value of your estate by tens of thousands of dollars and even more depending on its size.

In addition to financial matters, many elder law specialists also help their clients with medical and long term care issues. Through the execution of a living will you can state your wishes regarding things like life support systems and pain control. You may also choose to add a durable medical power of attorney through which you name a health care proxy to act in your behalf in the event of your incapacitation.

In a broad sense the field of elder law involves all of the legal matters that we face as we enter into our twilight years. If you have not done so already, it is a good idea to sit down with an elder law specialist to make sure that you have made the proper preparations for every possible contingency.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

People who are giving serious thought to their legacies will generally find that they have a lot of ground to cover, and it can be a bit challenging to know where to begin. The will is something that everyone has heard of and it is a good start, but many people aren’t aware of the fact that there are a number of different types of wills that are intended to serve different purposes. Most will find that if they were to execute these three documents they will have accomplished most if not all of their objectives.

Living Will

The need for incapacity planning is taking center stage as people are routinely living well beyond the age of 85 and the technologies that are used within the medical profession become more and more advanced. When you draw up a living will you prepare for the possibility that you may reach the point where you can’t make medical decisions for yourself. In the document you elucidate what type of medical procedures you would refuse to accept and those that you would approve should you become incapacitated at some future juncture. The matter of life support systems is often central to the living will.

Ethical Will

Ethical wills have been around since the time of Moses and probably before that. With these documents you take the time to share your moral values with your heirs, passing along the wisdom that you have acquired throughout your lifetime. Providing them with the opportunity to read your views on appropriate ethical conduct at a time when they are receiving their inheritances is especially timely.

Standard Will

The standard will is something that just about everyone is familiar with as the document that is used to record your wishes regarding the distribution of your assets after your death. When are drawing up your will it is a good idea to remember that someone must be entrusted to make sure your wishes are carried out, so the choice of executor is key.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Depending on your means, planning for your twilight years can be very challenging because to put it bluntly, none of us has a crystal ball and you simply don’t know how long you are going to live. The statistics tell us that people are living longer; the “oldest old,” those who are 85 years of age and older are the most rapidly expanding portion of the American population. This is as it stands now, and medical science is making strides on a continual basis, so there is no reason to think that the numbers of people living into their late eighties and nineties won’t continue to grow.

This increased longevity makes it all the more likely that you may spend some time in a nursing home or assisted living facility at some point in time, and the financial ramifications of this are profound. MetLife does a study on the subject each year, and the numbers are trending upward with no end to the increases in sight. In 2010 the average annual cost for a private room in a nursing home was $83,585, which is an increase of 4.6% over the 2009 average annual rate of $79,935.

The cost of residing in an assisted living community actually rose even more. In 2009 the average annual rate was $3,131 per month, which is $37,572 a year. In 2010 the average national cost rose to $3,293 a month or $39,516 annually.

In the state of California as a whole the cost of nursing home care is higher than the national average at nearly $105,000 annually for a private room; in San Diego it is about $97,500. The average cost for a year in an assisted living facility in San Diego is just below $37,000, which is right around the national average.

These are some eye popping numbers and the experts say that they will continue to grow, so it is useful to keep this in mind when you are planning your legacy.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.