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Planning for Your Elder Years

chris@brazoslawyers.com (Peterson Law Group) — Sat, 24 Oct 2009 16:02:00 +0000

If we were to ask an older person what his or her most important concerns for aging are, we would probably get a variety of different answers. According to surveys frequently conducted among the elderly, the most likely answers we would receive would include the following three principal concerns or life wishes:

1. Remaining independent in the home without intervention
from others

2. Maintaining good health and receiving adequate health care

3. Having enough money for everyday needs and not outliving
assets and income

To address these concerns or wishes and maintain the quality of life wanted in the elder years, it simply takes a little preplanning.

Few people do this kind of planning.

It is human nature not to worry about an event until it happens. We may prepare financially for unexpected financial disasters by covering our homes, automobiles and health with insurance policies.

However, no other life event can be as devastating to an elderly person’s lifestyle, finances and security as needing long term care. It drastically alters or completely eliminates the three principal lifestyle wishes listed above.

The majority of the American public does not plan for this crisis of needing eldercare. The lack of planning also has an adverse effect on the older person's family, with sacrifices made in time, money, and family lifestyles.

Because of changing demographics and potential changes in government funding, the current generation needs to plan for long term care before the elder years are upon them.

Let us look at some facts.

The population of the "very old,"--older than age 85--is the
fastest growing group in America. This population is at
highest risk for needing care. (Statistical abstract of the United States,
2008, population)
Medical science is preventing early sudden deaths, which
means living longer with impaired health and greater risk of
needing long term care.
The Alzheimer's Association estimates the risk of
Alzheimer's or dementia beyond age 85 to be about 46% of
that population.
It is estimated that 6 out of 10 people will need long term
care sometime during their lifetime.
Children are moving far away from parents or parents move
away during retirement making long distance care giving
difficult or impossible.
Government programs--already stretched thin for long term
care services--will experience even greater stress on
available funds in the future.

One of the important things for planning is how to maintain your lifestyle as you age. You may be healthy enough to stay in your own home with help provided for the following activities of daily living:

maintaining a home,
providing meals,
supervision,
companionship,
transportation and
shopping services.

This type of care at home is non-medical and must be provided free of charge by family, friends, or volunteers or the care must be paid for out-of-pocket by the family.

Government programs, in most cases, will not pay for this kind of care. It is estimated that 80% of all long term care is non-medical, with 90% of that care provided in the home. It is most likely that your long term care will begin with home care.

It is wise to plan now how you will pay for care when it is needed. In evaluating your future income you may find it necessary to add some resources such as long term care Insurance to pay for assisted living or nursing home costs. Long term care insurance must be purchased while you are younger and healthy. Failing health, stroke or other aging issues will not allow you to qualify for this insurance.

A reverse mortgage will also help pay for home care if staying in your home is an option.

Consider where you may want to live in your elder years. Many assisted living facilities offer complete care alternatives with a nursing home wing if needed. Senior retirement communities also offer many amenities with some including home care options.

Now is the time to do estate planning. A professional estate planner will give you direction on how best to protect your assets for future needs and for Medicaid planning.

Do your paper work. Now is the time to create your trusts, will, medical directives in a living will and any other documents you want noted for future use. Gather Insurance policies and bank records where they can be found by family members in case you are not able to get them yourself.

We don’t like to think of our elder years in terms of health problems, but a sudden stroke, heart failure or onset of dementia could make it impossible to carry out our own wishes if preparation was not made ahead of time.

The process of long term care planning involves the following four
principles:

1. Knowledge and preparation are the keys to success.
2. Having funds to pay for care expands the choices for care
settings and providers.
3. Using professional help relieves stress, reduces conflict, and
saves time and money.
4. Success is assured through a written plan accepted by all
parties involved.

(The above excerpt is quoted from "The 4 Steps of Long Term Care Planning," National Care Planning Council)

The National Care Planning Council' s website -- www.longtermcarelink.net -- provides over 700 pages of information for long term care planning and lists services of professional care providers in estate planning, long term care insurance, reverse mortgage, home care and many other important long term care services.

The National Care Planning Council' s book, “The 4 Steps of Long Term Care Planning,” provides information on what Medicaid and Medicare will cover as well as an overview of professional long term care service providers and how their services can help you create and execute your long term care plan. A check list of what to do to create a plan and forms for creating necessary paperwork are also included in the book.

PreNeed (Pre-Paid) Funeral and Burial Plans

chris@brazoslawyers.com (Peterson Law Group) — Thu, 24 Sep 2009 15:21:00 +0000

Advantages and Disadvantages of Prepaid Plans

One way to plan in advance for the end of one's life is to sign a formal contract called a "preneed funeral plan." With this plan, money to pay for a funeral and/or burial is held in a trust, in an escrow account or paid through an insurance policy on the life of the person desiring the plan. Parts of or all of the funeral service and burial are designed in advance and pre-funded in advance and the family has little to do but show up.

This type of planning has become very popular in recent years. A survey conducted by the AARP in 1999, found that two out of five people over age 50 had been approached to pre-purchase funerals and burial goods and services. An AARP survey in 1998 indicates that 32% of all Americans over age 50, roughly 21 million people, have prepaid some or all of their funeral and or burial expenses (but not necessarily through a formal preneed plan). Breaking that down; about 25% of the over age 50 population have prepaid for their burials (cemetery plot, mausoleum or niche), 18% have prepaid for headstones, urns, caskets , grave liners or vaults, opening and closing of graves and so on and 13% have prepaid for goods or services from a funeral home or funeral director. The same survey indicates that over $25 billion is being held in preneed trust funds. Roughly another $25 billion is waiting to be paid out in life insurance benefits. Prepaid or preneed funerals and burials are big business.

Funerals and burials funded privately by the family, or paid from an individual life insurance policy and arranged informally through a funeral home or funeral director are generally not subject to state regulation. Any formal arrangement through a second party or involving a contract is subject to regulation in all states. Each state has adopted different rules as to who can sell these plans, what the plans can provide, what contract provisions must be, how the plan is to be funded and what recourse purchasers might have in the event of fraud or default. All states call these regulated plans "preneed" funeral and burial arrangements.

Here are some advantages as to why one would want to buy a preneed plan for funeral and burial services and goods.

It provides peace of mind knowing these arrangements have been made in advance.
It avoids the burden on family members to make decisions when they are most vulnerable to manipulation.
It allows one to virtually control from the grave by determining in advance the funeral products, funeral services, burial products and burial services that one would prefer having for final arrangements.
It helps the family to avoid taking loans, arranging finance plans, raiding savings or selling assets to pay for a funeral and burial.
It guarantees (for many contracts) that if products and services currently purchased are not available in the future, equivalent substitutes will be provided at no additional cost.
It locks in guaranteed prices (available with some contracts) forever.
It allows for inflation in future costs (for those contracts that do not guarantee prices) by investing money in an interest-bearing account or buying life insurance that increases in value over time.
Depending on the contract, it may allow for transfer to another funeral home or for partial or full refund.

Unfortunately, there are also problems with prepaid, preplanned final arrangements.

With some trust fund and insurance funding options there may be no refund if someone wants to cancel the plan in the future.
If a purchaser moves to another state there may be no transfer options or there may be different rules governing the funding option.
In some contracts, interest earnings on investments resulting in excess money not needed for the plan may be retained by the funeral home or funeral director.
On installment plans interest may be charged but not credited to the account.
In certain insurance funded contracts, the ownership or death benefit may be irrevocably assigned to the contract holder (funeral home), preventing the purchaser from enjoying ownership rights in the policy.
In certain insurance funded contracts, a growth in the death benefit over time that exceeds the cost of the preneed plan services and goods may be pocketed by the contract holder (funeral home) instead of being refunded.
If the contract provider goes out of business or fails to secure 100% of the funds for future payment, there may be no recourse to get all of the money back that was put in.
If certain services or goods that were purchased initially are not available in the future, but more expensive versions might be, the family may be forced to pay extra for those items.
In certain insurance funded plans, if the insured dies too soon, there may have been a waiting period in which few or no benefits are paid at death, thus forcing the family to pay out of pocket for the funeral.
Certain unscrupulous providers may have failed to provide an itemized list of services and goods or failed to identify properly, specific services and goods, thus allowing the provider in the future to substitute less expensive items or to leave out services and goods that were originally anticipated in the agreement.

What Services and Goods Can Be Prepaid?

All states allow for prepaid plans for funeral services and merchandise. This would include such things as picking up the body, embalming and restoration, rooms or chapel for viewing and funeral services, casket, vault or grave liner, transportation, permits, death certificates, obituaries and so forth. Almost all states allow for prepaid burial services and merchandise as well. Only about six states do not allow it. Burial services and merchandise might include opening and closing the grave, grave markers, vaults or grave liners, mausoleums or niches. Cemetery plots are excluded from prepaid plans in all states.

The AARP has excellent information for consumers on planning for funerals. Quoting from the AARP:

"Most states have a licensing board that regulates the funeral industry. You may contact the board in your state for information or help. If you want additional information about making funeral arrangements and the options available, you may want to contact interested business, professional and consumer groups."

To find a planner in your area you may also contact the National Care Planning Council at inquiry@longtermcarelink.net or call 800-989-8137

How to form an LLC in Texas

chris@brazoslawyers.com (Peterson Law Group) — Sat, 15 Aug 2009 21:17:00 +0000

Many companies in Texas choose to use a limited liability company (or LLC) for their business. LLCs are great small business entities because they provide limited liability while also providing flexibility for taxing purposes.

To form an LLC, the first step is to choose a name for your limited liability company. You can use almost any name you want, except for names that are too close to the names of existing LLCs, violate someone else's trademark, or a few restricted names. You can check the LLC name options by contacting the Texas Secretary of State's Office.

The second step is to file a Certificate of Formation. This certificate, which used to be called Articles of Organization, lists basic information about your limited liability company. The information you will need includes:

Name of the LLC
Name and address of the Registered Agent
Address of the LLC's principal office
Names and addresses of the LLC Managers

The registered agent is a person that will receive formal notices from the State of Texas about matters involving the LLC. The registered agent will also be the person that will be served with any lawsuits involving the limited liability company. The LLC managers are essentially the same as a board of directors; they will manage the day to day operations of the limited liability company.

The third step is to file the Certificate of Formation and the required filing fee to the Texas Secretary of State. Once you receive confirmation (Certificate of Filing) from the Secretary of State, your limited liability company will be official and the LLC formation complete.

However, you probably also need to:

create an LLC Operating Agreement
sign initial LLC meeting minutes (or a written consent)
order a corporate record book and issue the LLC membership units (LLC stock)
apply for a federal tax id number
apply for any licenses or permits needed for your business

If you need help in starting an LLC, Peterson Law Group has 2 ways to help you. You can use our full service law firm or you can use our self help virtual law firm.

How to form an LLC in Texas

chris@brazoslawyers.com (Peterson Law Group) — Sat, 15 Aug 2009 21:17:00 +0000

Name of the LLC
Name and address of the Registered Agent
Address of the LLC's principal office
Names and addresses of the LLC Managers

However, you probably also need to:

create an LLC Operating Agreement
sign initial LLC meeting minutes (or a written consent)
order a corporate record book and issue the LLC membership units (LLC stock)
apply for a federal tax id number
apply for any licenses or permits needed for your business

If you need help in starting an LLC, Peterson Law Group has 2 ways to help you. You can use our full service law firm or you can use our self help virtual law firm.

What is the purpose of collaborative law?

chris@brazoslawyers.com (Peterson Law Group) — Thu, 11 Jun 2009 00:23:00 +0000

The purpose of collaborative law is to resolve a dispute in a manner that is beneficial to all concerned. The parties and their lawyers voluntarily agree to cooperate honestly and in good faith to develop options and possible solutions.

If you are interest in this process, contact us today. We are members of the Collaborative Law Institute of Texas.

For more information concerning collaborative law, visit our website at BrazosLawyers.com.

How does Collaborative Law help?

chris@brazoslawyers.com (Peterson Law Group) — Tue, 09 Jun 2009 10:22:00 +0000

Collaborative Law is a voluntary dispute resolution process originally developed by a family law attorney who had become disenchanted with the traditional style of litigation. Often court battles became so bitter and destructive that wounds between the parties never healed. In an effort to alleviate the emotional scars and financial hardships of divorcing couples, the collaborative process was born. Collaborative law aims to preserve the dignity and relationships of individuals involved in divorce or other family-related litigation. After all, they may still have to communicate on parenting and other issues in the future.

For more information concerning collaborative law, visit our website at BrazosLawyers.com.

How does collaborative law work?

chris@brazoslawyers.com (Peterson Law Group) — Sun, 07 Jun 2009 10:20:00 +0000

The way collaborative law works is:

• The process is voluntary and everyone has to agree to use Collaborative Law. Each person hires a lawyer trained in the collaborative dispute resolution process.

• All participants and their lawyers sign a Participation Agreement and then prepare a schedule for “face to face” meetings. Each meeting follows an agenda and is attended by the parties and their attorneys. Unless all parties agree otherwise, only topics on the agenda are discussed. The agenda helps keep the discussions on track and helps to minimize surprise and emotional issues. Each person has the opportunity to express that party’s complaints, explain any concerns, and listen to the complaints and concerns of the other people involved.

• The Participation Agreement provides that all sides will exchange all necessary information which is in their possession or control. They also agree that they will not make unnecessary and expensive discovery requests from the other parties.

• The participants agree to seek an expert opinion regarding a fact or issue, or they may elect to mediate or arbitrate an issue of the dispute.

• If at any time during the process a person decides not to continue participating, the collaborative lawyers must withdraw, and the parties continue their case in court with new attorneys.

For more information concerning collaborative law, visit our website at BrazosLawyers.com.

What is Collaborative Law?

chris@brazoslawyers.com (Peterson Law Group) — Fri, 05 Jun 2009 10:17:00 +0000

Collaborative Law is a process for resolving legal disputes. All parties and their separate lawyers agree to keep the case out of court and to exchange information that pertains to the dispute. A court or judge only gets involved to sign the divorce decree and other documents that the parties have agreed upon.

For more information, visit our website at BrazosLawyers.com.

In the News: Chris Peterson

chris@brazoslawyers.com (Peterson Law Group) — Sat, 30 May 2009 06:43:00 +0000

Chris Peterson was named the Treasurer of the Board of Directors for the Research Valley Partnership. He was appointed to the Board last year by the Bryan City Council. Peterson will serve as Treasurer until May 2010.

College Station's Draft Comprehensive Plan

chris@brazoslawyers.com (Peterson Law Group) — Sat, 23 May 2009 15:10:00 +0000

The City of College Station has come out with a draft of their Comprehensive Plan. Developers in Bryan/College Station should take a look at the future land use and throughfare plans to see any effects on potential developers. Landowners, especially those in the City's extraterritorial jurisdiction, may want to look at how the future land use plan may affect the sale or development of their property.

Collect your invoices quick or you won't get paid.

chris@brazoslawyers.com (Peterson Law Group) — Thu, 16 Apr 2009 19:38:00 +0000

A recent study revealed that bill more than 60 days past due can collected about 89% of the time. However, that number drops to 67% after 6 months, and to 45% after 1 year. Thus, the key to accounts receivable collections is to catch it early, have consistent communications, and to take further action soon. For more info on Peterson Law Group's debt collections practice, click here.

Long Distance Care Givers Receive Help

chris@brazoslawyers.com (Peterson Law Group) — Thu, 09 Apr 2009 13:56:00 +0000

Living in a different city or state -- miles from aging parents -- can be very difficult. Keeping in touch by telephone and making long trips to help parents or aging relatives with their needs can be time consuming and not nearly as effective as being available full time in person.

Mark Sessions spent two years juggling his restaurant business with multiple daily phone calls to his elderly parents, checking on their needs and answering their questions. Family vacations were spent traveling the 500 miles to his parent's home to personally take care of home maintenance and provide health care visits to their doctor. During his last visit, Mark noticed his father had difficulty walking and his mother was confused as to which medications she was to take and at what time. This alarming change in his parent's condition concerned Mark that his parents' care needs required more than frequent phone calls and vacation visits. Running his business and handling his parent's long distance care was now becoming very challenging.

According to a report by the Alzheimer's Association of Los Angeles & Riverside, California, there are approximately 3.3 million long distance caregivers in this country with an average distance of 480 miles from the people they care for. The report also states that 15 million days are missed from work each year because of long distance care giving. Seven million Americans provide 80% of the care to ailing family members and the number of long distance caregivers will DOUBLE over the next 15 years.
Long Distance Caregiver Project – Alzheimer's Association LA & Riverside, Los Angeles, CA (May 15, 2002, National Web Seminar by Judith Delaney, MFT, Clinical Coordinator)

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 -- a lso 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 -- 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 distant family members and their aging elder loved ones.

Jacqueline Marcell -- author of "Elder Rage, or Take My Father...Please! How to Survive Caring for Aging Parents" (Impressive, 2000) -- says,

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

Below is a partial list of what a care manager or Professional Geriatric Care Manager might do:

Assess the level and type of care needed and develop a care plan.
Take steps to start the care plan and keep it functioning.
Make sure care is in a safe and disability friendly environment.
Resolve family conflicts and other issues with long term care.
Become an advocate for the care recipient and the caregiver.
Manage care for a loved one for out-of-town families .
Conduct ongoing assessments to implement changes in care.
Oversee and direct care provided at home.
Coordinate the efforts of key support systems.
Provide personal counseling.
Help with Medicaid qualification and application.
Arrange for services of legal and financial advisors.
Provide placement in assisted living facilities or nursing homes.
Monitor the care received in a nursing home or in assisted living.
Assist with the monitoring of medications.
Find appropriate solutions to avoid a crisis.
Coordinate medical appointments and medical information.
Provide transportation to medical appointments
Assist families in positive decision making
Develop care plans for older loved ones not now needing care
“The 4 Steps of Long Term Care Planning,” National Care Planning Council

Services offered will depend on the educational and professional background of the care manager, but most are qualified to cover items in the list above or can recommend a professional who can. Fees may vary. There is often an initial consultation fee that is followed by hourly fees for services. Health insurance does not generally cover these fees but long-term care insurance might.

In 2002, the AARP published a survey from geriatric care mangers about their fees:

“Respondents were asked how much they charged for their services, which might include: an initial consultation; fees on an hourly or per visit basis; fees for development of a care plan; and fees on a fixed-price contract basis. Hourly fees averaged $74 an hour. GCMs charged an average $168 to develop a care plan. Initial consultations averaged $175. Seven of ten current GCMs responded in the affirmative when asked if they had a statement that listed their fees. ” Written by Robyn Stone, DrPH, Principal Investigator; Susan Reinhard, RN, PhD, Co-Principal Investigator; Jean Machemer, MSG, Research Associate; and Danylle Rudin, MSW, Research Associate of The Institute for the Future of Aging Services, Washington, D.C.Barbara Coleman, Project Manager, AARP Public Policy Institute November 2002

When you take into account the time absent from work and time to find the right care resources for your loved ones, along with the cost of travel expenses to monitor their care, you will probably concur that using a caregiver is money well spent. Add on to this the stress of handling your own life circumstances combined with being a caregiver and you will probably wonder how you could have ever done without the care manager.

A professional or geriatric care manager can be an important asset to all families in elder care situations. Here is an example of how a care manager can help.

Mary is taking care of her aging husband at home. He has diabetes and is overweight. Because of the diabetes, her husband has severe neuropathy in his legs and feet and it is difficult for him to walk. He also has diabetic retinopathy and, therefore, cannot see very well. She has to be careful that he does not injure his feet, since the last time that happened he was in the hospital for four weeks with a severe infection. She is having difficulty helping him out of bed and with dressing and using the bathroom. She relies heavily on her son, who lives nearby, to help her manage her husband's care.

On the advice of a friend, Mary is told about a professional care manager, Sharon Brown. The cost of an initial assessment and care plan from the care manager is $175.00. Mary thinks she has the situation under control and $175.00 for someone from the outside to come in and tell her how to deal with her situation seems ridiculous.

One day Mary is trying to lift her husband and injures her back severely. She is bedridden and cannot care for her husband. Her son, who works fulltime, now has two parents to care for. On the advice of the same friend, he decides to bring in Sharon Brown and pay her fee himself.

Sharon does a thorough assessment of the family's needs. She arranges for Mary's doctor to order Medicare home care during Mary's recovery. Therapists come in and help Mary with exercises and advice on lifting. Sharon advertises for and finds a private individual who is willing to live in the home for a period of time to help Mary with her recovery and watch over her husband. Sharon makes sure the new caregiver is reliable and honest and that taxes are paid for the employment. Sharon enlists the support of the local area agency on aging and makes sure all services available are provided for the family.

Sharon also calls a meeting with Mary's family and explains to them the care needs and how they need to commit to help with those needs. Sharon makes arrangements to rent or purchase medical equipment for lifting, moving and easier use of the bathroom facilities. Medicare will pay much of this cost. Sharon also works closely with an elder law attorney and a financial planner who specializes in the elderly. The attorney prepares documents for the family including powers of attorney, a living will and advice on preserving Mary's remaining assets. The financial planner recommends a reverse mortgage specialist to help Mary and her husband tap unused assets in their home's equity. Some reverse mortgage proceeds are used to pay off debt. The remaining proceeds are converted into income with a single premium immediate income annuity in order to provide Mary adequate income when her husband is gone and she looses one of the Social Security payments.

With the help of the care manager, Mary's life and future have been significantly improved. Her husband as well, if he adheres to the care plan, may end up having a better quality of life for his remaining years.
“The 4 Steps of Long Term Care Planning,” National Care Planning Council

The National Care Planning Council promotes and supports professional and geriatric care managers on its website www.longtermcarelink.net .

College Station's new zero rise floodplain ordinance taking shape

chris@brazoslawyers.com (Peterson Law Group) — Tue, 07 Apr 2009 21:58:00 +0000

The City of College Station has come out with a draft zero rise floodplain ordinance. It is a pretty significant departure from current city policy. Those interested in real estate development in the City of College Station should attend a stakeholder meeting on April 13th at the College Station Conference Center from 11:30 am to 1:00 pm. Lunch will be served at that meeting.

Estate Tax under Obama's Budget

chris@brazoslawyers.com (Peterson Law Group) — Thu, 02 Apr 2009 20:59:00 +0000

Folks have been worried for some time about the changes to the current estate tax system with the change in President. President Obama's current budget does make a coupld of significant changes to the current estate tax system.

First, the estate tax exemption for 2010 is replaced in toto. Previously, there was an unlimited exemption in 2010, which meant that no estates would be subject to estate tax. Now, that has changed, and the unlimited exemption has been removed for 2010.

Second, the estate tax exemption amount for 2010 and the following years has been changed to $3.5 million per individual. Thus, with proper estate tax planning, a married couple can shield $7 million from the estate tax.

While it would have been nice to have the unlimited exemption in 2010, the 2011 exemption is a significant increase from the $1 million exemption amount that was scheduled for those years. Thus, although there is some disappointment in this news, there is also a significant silver lining that will probably be a bigger benefit to more Americans.

Little-Known Government Program Pays the Cost of Elder Care

chris@brazoslawyers.com (Peterson Law Group) — Tue, 24 Mar 2009 16:38:00 +0000

WHAT IF 33% OF ALL SENIORS IN THIS COUNTRY could receive up to $1,949 a month in additional income from the government to help cover their elder care costs? THEY CAN!

Under the right circumstances, a little-known federal program will pay additional income to cover long term care costs for at least 1/3 of all US senior households -- that's how many war veterans or their surviving spouses there are in this country. But the provisions of this program are such a well-kept secret that only 4.7% of US seniors are actually receiving the benefit. The great news about this program is the Department of Veterans Affairs will pay you to hire your family, friends or just about anyone to take care of you (Caregiving spouses can't be paid under this program). The program is called "Veterans Pension."

Most people who have heard about Pension know that it will cover the costs of assisted living and, in some cases, cover nursing home costs as well. But the majority of those receiving long term care in this country are in their homes. Estimates are that approximately 70% to 80% of all long term care is being provided in the home. All of the information available about Pension overlooks the fact that this benefit can also be used to pay for home care.

It also comes as a surprise to most people that the Department of Veterans Affairs will allow veterans' households to include the annual cost of paying any person such as family members, friends or hired help for care when calculating the Pension benefit. This annual cost is deducted from household income and used to calculate a lower "countable income" which in turn enables families to receive this disability income from VA. Even though VA claims the benefit is for low income families, because of the special provision in the regulations -- allowing for deduction for care costs -- households earning between $3,000 to $6,000 a month or more can still qualify for Pension under the right conditions.

This extra income can be a welcome benefit for families struggling to provide eldercare for loved ones at home. Under the right circumstances, this annualized medical expense for the cost of family members, friends or any other person providing care, could create an additional household income of up to $1,056 a month for a single surviving spouse of a veteran, up to $1,644 a month for a single veteran or up to $1,949 a month for a couple.

If the disabled care recipient has been rated "housebound" or in need of "aid and attendance" by VA, all fees paid to an in-home attendant will be allowed as long as the attendant provides some medical or nursing services for the disabled person. The attendant does not have to be a licensed health professional. There is also no need to distinguish between medical and nonmedical services -- all are deductible.

For a disabled person who has been rated "in need of aid and attendance" or "housebound", a family member will be considered an in-home attendant, but that family member has to be paid for services duly rendered. There is potential for fraud here where a family member may move into the home and ostensibly receive payment as a caregiver but not actually provide the level of care paid for. Documentation for this care must be provided to VA, and it is reasonable for VA to question whether the services being purchased from a family member living in the household are legitimate. Such arrangements should be extensively documented and completely arm's-length.

The care arrangements and payment for home care must be made prior to application and there must be evidence that this care is needed on an ongoing and regular basis. We recommend a formal care contract and weekly invoice billing for services. Money must exchange hands and federal law requires employment taxes must be withheld and there must be evidence of this. All of this documentation must be provided as proof to VA when making application for the pension benefit. Costs for these services must be unreimbursed; meaning these costs are not paid by insurance, by contributions from the family or from other sources. VA will allow, however, family caregivers being paid by their loved ones, to turn around and pay the household bills for their loved ones to help defray the cost of the care.

Due to the need for a rating, documentation for annualizing care costs and the extensive proof needed to show the caregiver is indeed an employee of the care recipient, most people should not try this on their own. An expert in this area should be sought to help with the application in order to avoid lengthy delays in awarding a benefit or a possible denial of benefits. For a list of individuals or companies in your area who understand how to get this benefit go to http://www.longtermcarelink.net/ref_veterans_consultants.htm

College Station's Draft Tree Preservation Ordinance

chris@brazoslawyers.com (Peterson Law Group) — Tue, 10 Mar 2009 22:40:00 +0000

On March 26, 2009, the College Station City Council is going to consider a tree preservation ordinance that has been in the works for some time. This ordinance will affect both developers and homeowners, so it is something that all should be aware of.

The ordinance's purpose is stated as: "The purpose and intent of this Section is to promote the preservation of trees and tree stands during construction to facilitate site design and construction that contributes to the long-term viability of existing trees and to develop a process to control the removal of trees. It is further the purpose of this ordinance to prevent the untimely and indiscriminate removal or destruction of trees, maintain and enhance a positive image of the City and to protect trees and promote the ecological environmental and aesthetic values of the City."

The ordinance will require a tree removal permit before removing trees greater than 8+ inches in diameter or before clearing a site containing such trees. It also has special requirements for "protected trees", a term which is defined in the ordinance. In order to remove these trees, there must be replacement trees planted.

The ordinance is very specific and should be evaluated in detail. If you want a copy of the draft, contact the City of College Station or e-mail us at chris@brazoslawyers.com.

As always, if you have a legal need, contact Peterson Law Group at 979-703-7014 or through our website, BrazosLawyers.com.

2009 First Time Home Buyer Tax Credit

chris@brazoslawyers.com (Peterson Law Group) — Tue, 03 Mar 2009 16:22:00 +0000

There is a new tax credit available for first time home buyers. The tax credit is $8,000 and does not have to be repaid.

Am I eligible?

To qualify, you must be a buyer who has not owned a principal residence in the 3 years prior to this purchase, and you must be a US citizen who files tax returns.

Does it matter how much money I make?

You can claim the full tax credit if you are single and make less than $75,000 or married and make less than $150,000. You can take a partial credit if you make less than $95,000 as a single person or $170,000 as a couple. The credit is not available if you make more than those amounts.

When do I have to buy a home?

Home purchases made between January 1, 2009 and December 1, 2009 qualify for the tax credit. The transaction must officially "close" during that time period, so don't wait until the last minute.

What types of homes qualify?

All single family homes, townhomes and condominiums qualify as long as you plan to use it as your principal residence (and meet the other requirements above).

How does the credit work?

When you file your tax return, you will apply the tax credit against the amount of income taxes you owe. So, if you owe $10,000, your tax bill will be reduced to $2,000. If you owe $5,000, you will get a tax refund of $3,000. Remember that if you are employed and have been paying withholding from your paycheck or have paid quarterly estimated taxes, you already have tax money stored up with the IRS. This credit is in addition to what you have personally paid.

To find out more information, check out www.federal housingtaxcredit.com.

Nursing Homes for Veterans

chris@brazoslawyers.com (Peterson Law Group) — Thu, 26 Feb 2009 19:40:00 +0000

Nursing home coverage for veterans is available from two sources within the Department of Veterans Affairs -- the veterans health care system and the state veterans homes system.

Nursing Home Coverage through the VA Health Care System
Nursing home coverage along with other long term care services such as home care and assisted living as well as geriatric care management are available through the Veterans Health Administration for qualifying veterans.

In order to get into the veterans health care program, the veteran must have service-connected disabilities, or be below a qualifying income level or be receiving Veterans Pension income. Once in the system, veterans are not guaranteed long term care services, including nursing home care, unless they meet specific requirements. Here is a list of these requirements for nursing home coverage.

Who is Eligible for Nursing Home Care

Any veteran who has a service-connected disability rating of 70 percent or more;
A veteran who is rated 60 percent service-connected and is unemployable or has an official rating of "permanent and total disabled;"
A veteran with combined disability ratings of 70 percent or more;
A veteran whose service-connected disability is clinically determined to require nursing home care;
Nonservice-connected veterans and those officially referred to as "zero percent, noncompensable, service-connected" veterans who require nursing home care for any nonservice-connected disability and who meet income and asset criteria; or
If space and resources are available, other veterans on a case-by-case basis with priority given to service-connected veterans and those who need care for post-acute rehabilitation, respite, hospice, geriatric evaluation and management, or spinal cord injury.

VA's nursing home health system programs include VA-operated nursing home care units and contract community nursing homes. Many VA hospitals operate nursing home care units located in or near the hospital. Other hospitals, without adequate nursing home beds, contract with approximately 2,500 community private nursing homes nationwide to provide services.

State Veterans Homes
State veterans homes fill an important need for veterans with low income and veterans who desire to spend their last years with "comrades" from former active-duty. The predominant service offered is nursing home care. VA nursing homes must be licensed for their particular state and conform with skilled or intermediate nursing services offered in private sector nursing homes in that state. State homes may also offer assisted living or domiciliary care which is a form of supported independent living.

Every state has at least one veterans home and some states like Oklahoma have a number of them. There is great demand for the services of these homes, but lack of federal and state funding has created a backlog of well over 130 homes that are waiting to be built.

Unlike private sector nursing homes where the family can walk in the front door and possibly that same day make arrangements for a bed for their loved one, state veterans homes have an application process that could take a number of weeks or months. Many state homes have waiting lists especially for their Alzheimer's long term care units.

No facilities are entirely free to any veteran with an income. The veteran must pay his or her share of the cost. In some states the veterans contribution rates are set at a certain level and if there's not enough income the family may have to make up the difference. Federal legislation, effective 2007, also allows the federal government to substantially subsidize the cost of veterans with service-connected disabilities in state veterans homes.

State Veterans Homes Per Diem Program
The Veterans Administration pays the state veterans homes an annually adjusted rate per day for each veteran in the home. This is called the per diem. The 2008 nursing per diem amount is $74.42 and for domiciliary care it is $34.40. Adult Day Health Care – up to one-half of the cost of care -- cannot exceed $66.82 per day. The goal of state veterans homes is to get Congress to increase the per diem rate for nursing care to 75% of the state private nursing rates. In most states the per diem falls well short of this goal.

The per diem program and construction subsidies mean that State veterans homes can charge less money for their services than private facilities. Some states have a set rate, as an example $1,400 a month, and they may also be relying on qualified veterans receiving the Pension benefit with aid and attendance plus the per diem to cover their actual costs. Other states may charge a percentage of the veteran's income but be relying on other subsidies to cover the rest of the cost. Some state homes can receive Medicaid support as well.

Most of the states with income-determined rates are selective about the veterans they accept. These states may rely on a variety of private and public sources to help fund the cost of care.

Eligibility and Application Requirements for State Veterans Homes
From state to state, facilities vary in their rules for eligible veterans. And even in the same state it is common, where there is more than one state home, for some homes to have very stringent eligibility rules and others to be more lenient. These differing rules are probably based on the demand for care and the available beds in that particular geographic area.

Some homes require the veteran to be totally disabled and unable to earn an income. Some evaluate on the basis of medical need or age. Some evaluate entirely on income -- meaning applicants above a certain level will not be accepted. Some accept only former active-duty veterans, while others accept all who were in the military whether active duty or reserve. Still others accept only veterans who served during a period of war. Some homes accept the spouses or surviving spouses of veterans and some will accept the parents of veterans but restrict that to the parents of veterans who died while in service (Goldstar parents).

Federal regulations allow that 25% of the bed occupants at any one time may be veteran-related family members, i.e., spouses, surviving spouses, and/or gold star parents who are not entitled to payment of VA aid. When a State Home accepts grant assistance for a construction project, 75% of the bed occupants at the facility must be veterans.

Domicile residency requirements vary from state to state. The most stringent seems to be a three-year prior residency in the state whereas other homes may only require 90 days of residency.

All states require an application process to get into a home. Typically a committee or board will approve or disapprove each application. Many states have waiting lists for available beds.

A current contact list of all state veterans homes is available at http://www.longtermcarelink.net/ref_state_veterans_va_nursing_homes.htm

To Will or Not to Will

chris@brazoslawyers.com (Peterson Law Group) — Tue, 09 Dec 2008 02:03:00 +0000

The Texas Bar Journal has a new client page that contains very basic information about why everyone should have a will. Click here for the link. If you need a will, please contact Peterson Law Group at BrazosLawyers.com or 979-703-7014.

Ending the Violence: How to Obtain a Texas Protective Order

chris@brazoslawyers.com (Peterson Law Group) — Sat, 12 Apr 2008 20:52:00 +0000

This article comes from the State Bar of Texas:

"The Texas Department of Public Safety reports that in 2006, there were 186,868 incidents of documented family violence statewide. However, the Texas Health and Human Services
Commission estimates that as many as 982,916 Texas women were actually battered that year. In Texas, more than 800 women were killed by their domestic partners from 1998 to 2005. These statistics indicate that although family violence is an inexcusable crime, it is prevalent in today’s society. If you or someone you know is a victim of family violence, you are not alone. Although the legal system is unfamiliar territory for most people, it can offer some protection from family violence through the use of a legal document known as a protective order.

What is a protective order?
A protective order is a civil court order that is designed to stop an abuser from continuing acts of violence, threatening, harassing, or stalking. A judge can create various conditions of a
protective order. For example, a judge may order a respondent — the person restricted by the order — to vacate a residence, pay child support, attend counseling, and/or not possess a
firearm. Abusers who violate a protective order can be fined, arrested, or both.

Who is eligible for a protective order?
Victims of family violence are eligible for a protective order. In Texas, “family violence” means an act by a member of a family or household against another member of the family or household that is intended to result in physical harm, bodily injury, assault, or sexual assault or that is a threat that reasonably places the member in fear of imminent physical harm, bodily injury,
assault, or sexual assault, but does not include defensive measures to protect oneself.
An application for a protective order may be filed by an adult member of the dating relationship or any adult may apply for a protective order to protect a child from family violence. In addition,
a prosecuting attorney or the Department of Protective and Regulatory Services may file an application for the protection of any person alleged to be a victim of family violence. Please contact your local law enforcement or domestic violence prevention agency immediately if you or
someone you care about is a victim of family violence. Even if you are not eligible for a protective order, other options may be available.

How do you obtain a protective order?
The first step is to complete an application. The application may be obtained through the office of the county or district attorney, a private attorney, or a legal aid program. In some communities,
domestic violence advocacy groups also provide assistance in obtaining protective orders. The application for a protective order must be filed in either the county where the victim lives
or the county where the offender lives and the applicant’s address can be kept confidential. There are no minimum time limits to establish residency, so even if you have not lived in the same county for very long, you may still file an application for a protective order in
that county. Protective orders are available in every county in Texas.

How much does a protective order cost?
Applying for a protective order is free. An applicant for a protective order may not be charged a fee by the county or district attorney’s office or by a sheriff or constable in connection with the
filing, serving, modifying, or withdrawing of a protective order. There is also no cost for certifying copies, court reporter fees, or any other service related to a protective order. However, if the applicant chooses to use a private attorney for assistance, the applicant may
still have to pay for the attorney’s time in assisting with the protective order. In this case, the court can order a respondent who has committed family violence to pay the private attorney’s fees.

How long does a protective order last?
If the court reviewing the application determines that there is a real threat of immediate family violence, the court may issue a temporary ex parte order that is valid for up to 20 days. The court will then set a hearing date for a final protective order, usually no more than 14 days after the application is submitted. At this hearing, the court will decide whether to grant a final protective order. If granted, the final protective order may be effective for up to two
years. If a person subject to the protective order is imprisoned on the date the protective order would expire, the period for which the order is effective can be extended and the order will expire one year after the person is released from confinement. A new protective order can also be requested after an earlier protective order has expired or while one is still in effect, so long as the earlier protective order is set to expire within 30 days of the date the new application for a protective order is filed.

What does a protective order actually do?
No piece of paper can protect you from all incidents of violence; however, a protective order provides a good deterrent in most situations. A protective order can require the abuser to stay
away from the victim’s home, workplace, and children’s schools (if the children are protected persons in the order). It can order the abuser to stop communicating in a harassing manner
with or threatening the victim. Protective orders can require the abuser to attend counseling, to pay child support, and to pay spousal support. All of the provisions in the order can be
enforced in court. Some violations, but not all, can result in the police taking the abuser to jail if he or she violates the order."

For the full article, click here.

In the News: Chris Peterson

chris@brazoslawyers.com (Peterson Law Group) — Sat, 05 Apr 2008 20:47:00 +0000

Chris Peterson, a partner with Swearingen, Peterson & Benn, LLC, was recently appointed to the Advisory Council for the Research Valley Innvovation Center, a business incubator formed by the Research Valley Partnership. The RVP oversees the economic development efforts for Brazos County and the cities of Bryan and College Station, Texas.

Handy tips for choosing a tax preparer

chris@brazoslawyers.com (Peterson Law Group) — Wed, 02 Apr 2008 21:45:00 +0000

The IRS has a handy tip sheet for choosing a tax preparer. Click here for the link. Some of the more helpful tips include:

-A paid preparer must sign the return as required by law.
-Avoid preparers who claim they can obtain larger refunds than other preparers. If your returns are prepared correctly, every preparer should derive substantially similar numbers.
-Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.
-Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.
-Choose a preparer you will be able to contact and one who will be responsive to your needs. Ask who will actually prepare the return before engaging services. Avoid firms where your work may be delegated down to someone with less training or some unknown worker. You should know exactly who works with your tax matters at all times and how to contact him or her; after all, you are paying for it. Determine if the preparer is exporting your return to a foreign country for preparation. Foreign countries do not have the same security and privacy laws as the United States nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.
-Investigate whether the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs, the state’s bar association for attorneys or the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers.
-Determine if the preparer’s credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers. Is he or she an Enrolled Agent, Certified Public Accountant (CPA) or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return that they signed as a preparer.
-Find out if the preparer is affiliated with a professional organization that provides or requires its members to pursue continuing education and holds them accountable to a code of ethics.
-Check IRS.gov for information regarding abusive shelters and other tax schemes and scams.

Remember, if it sounds too good to be true, chances are it is.

IRS Small Business Guide is available online now

chris@brazoslawyers.com (Peterson Law Group) — Wed, 02 Apr 2008 21:43:00 +0000

The Small Business Resource Guide 2008, a one stop source for all the information a small business owner needs to comply with federal tax laws, is now available on IRS.gov.
You can also order a CD version online, or call (800) 829-3676 and ask for Publication 3207, revision March 2008.

EPA issues new regulation on lead-based paint

chris@brazoslawyers.com (Peterson Law Group) — Tue, 01 Apr 2008 20:05:00 +0000

The Environmental Protection Agency has come out with a new lead-based paint rule that will affect the building and remodeling industry. The poress release follows:

"To further protect children from exposure to lead-based paint, EPA is issuing new rules for contractors who renovate or repair housing, child-care facilities or schools built before 1978. Under the new rules, workers must follow lead-safe work practice standards to reduce potential exposure to dangerous levels of lead during renovation and repair activities.

"The "Lead: Renovation, Repair and Painting Program" rule, which will take effect in April 2010, prohibits work practices creating lead hazards. Requirements under the rule include implementing lead-safe work practices and certification and training for paid contractors and maintenance professionals working in pre-1978 housing, child-care facilities and schools. To foster adoption of the new measures, EPA will also conduct an extensive education and outreach campaign to promote awareness of these new requirements.

"The rule covers all rental housing and non-rental homes where children under six and pregnant mothers reside. The new requirements apply to renovation, repair or painting activities where more than six square feet of lead-based paint is disturbed in a room or where 20 square feet of lead-based paint is disturbed on the exterior. The affected contractors include builders, painters, plumbers and electricians. Trained contractors must post warning signs, restrict occupants from work areas, contain work areas to prevent dust and debris from spreading, conduct a thorough cleanup, and verify that cleanup was effective. "

More information: EPA's lead program (http://www.epa.gov/lead)

Texas Vehicle Exemption for Personal Vehicle Used in Business

chris@brazoslawyers.com (Peterson Law Group) — Tue, 25 Mar 2008 15:02:00 +0000

The following reminder comes from the Texas Association of Realtors:

"Don't ignore April 1 deadline for exempting your vehicle from taxationYou already know you aren't required to pay property tax on your personally owned vehicle that you also use for business purposes. But do you know how your local appraisal district is handling this exemption?
"Each of the 253 appraisal districts in Texas is handling the exemption of these so-called mixed-use vehicles from taxation differently. Some districts don't require an exemption form for such a vehicle if the owner was not charged property tax on that vehicle in 2007. If you haven't previously had to pay property tax on your personally owned vehicle that you use for business, check with your local appraisal district before you make the decision to not file an exemption form. Without filing an exemption form, there is no guarantee that the appraisal district won't tax you. A list of county appraisal districts with each district's contact information is available online. Those districts that require an exemption to be filed must receive your 2007 exemption by April 1; your 2008 exemption is due April 30."

For all of your legal needs, contact us at 979-680-9993 or via our website, BrazosLawyers.com.