7 - 1

Understanding how we age

Adapting a home for aging in place

Universal design

Estate planning

Wills and directives

In this chapter

7 - 2

How We Age

Height

Weight

Temperature

Vision

Hearing

Cognitive ability

7 - 3

Benefit of perspective

Increased confidence

Less concern with what others think

Know what we need for satisfaction and happiness

Many life decisions are already made

The Good News

7 - 4

Decreased:

Strength

Stamina

Mobility

Dexterity

Hearing

Sense of smell, taste, and thirst

Metabolism

The Not So Good News

7 - 5

Increased

Force of gravity

Sense of cold

Number of long-term friends now deceased

Separation from loved ones

Feelings of depression

Changes in community and neighborhood

More Bad News

7 - 6

“Ac-cent-tchu-ate the positive

Eliminate the negative

Latch onto the affirmative

Don’t mess with Mister In-Between!”

— Bing Crosby

You’ve got to . . .

7 - 7

Ability to perform activities of daily living (ADLs) is key

Availability of a care giver

Facility should be a match for faculties and abilities

Does not have to look institutional

Preparing to Age in Place

7 - 8

Equitable use

Flexibility in use

Simple and intuitive

Perceptible information

Tolerance for error

Low physical effort

Size and space for approach and use regardless of body size, posture, or mobility

Universal Design Principles

7 - 9

Assets go to the donor’s chosen heirs

Reduce taxes and administrative costs

“Burn the mortgage” or “let the last check bounce”

Be aware of real property ownership in relation to an estate plan

Recommend clients seek attorney’s help

Estate Planning

7 - 10

Avoid probate

Assure that the asset goes to the child

Avoid family conflict

Implement verbal instructions

Pay bills and manage financial affairs

Caution: watch out for gift tax, children’s lawsuits, divorces, creditors

Adding Names to a Title

7 - 11

Unintended consequences

Right of survivorship may eliminate family from inheriting

Co-owner’s debts and obligations expose each owner

Easy to add, difficult to remove a co-owner

Joint Tenancy

7 - 12

Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin

Property acquired during the marriage is equally owned by spouses

100% basis step up on death of spouse

Community Property

7 - 13

Available only for married couples

Treats couple as legally one person

Property passes outside of probate to surviving spouse

Neither spouse can convey interests to another person without the other spouse’s consent, regardless of will

Tenancy by the Entirety

7 - 14

States have latitude in implementing the policy guidelines

Basic eligibility rule – no liquid assets over $2,000 ($3,000 for couple)

Medicaid can recover expenses through estate or TEFRA line

Medicaid Estate Recovery

7 - 15

Home equity not a “countable asset”

Reduce countable assets by transferring value into the home, such as paying off outstanding home loans, buying a larger home, or paying for repairs or renovations

Medicaid Estate Recovery

7 - 16

Plan ahead for possible incapacity

Pass to heirs without the need for probate

A/B Trust shelters spouses’ estates

Trusts

7 - 17

Assure intent of a decedent is followed

Court controls the decedent’s estate

Appoints the personal representative executor or executrix

Representative of the estate, not the beneficiaries

Expensive, lengthy, public, loss of control

Probate

7 - 18

Sale to pay debts and taxes

Interim allowance to the family

Inventory of assets and appraisal for tax basis

Remaining assets distributed to the heirs

Probate Process

7 - 19

The court decides need for sale

Publication of notice

Personal representative signs listing

Brokerage compensation court-approved

Confirmation of Sale hearing required

Overbids may be allowed

Probate Sale of Real Property

7 - 20

Dispose of assets, name beneficiaries of the estate, and appoint an executor

Check validity in other states

No will – the law decides who inherits

Wills

7 - 21

Manage the personal needs and financial resources of the person who lacks legal capacity

Conservator for property

Guardian for a person

Conservators and Guardians

7 - 22

Conduct financial affairs and/or make health care decisions

Combination of a Durable Power of Attorney and Living Will recommended

Someone strong enough to stand up to other family members and doctors

Durable Power of Attorney ends at death – no authority to transfer property to heirs

Powers of Attorney

7 - 23

Who can make health care decisions for you when you cannot make them?

What kind of medical treatment ?

How comfortable do you want to be?

How do you want people to treat you?

What do you want your loved ones to know?

wwwagingwithdignity.org

Directives – Living Will

7 - 24

Personal statement of values, principles, hopes, family stories and histories, explanations for life choices, recounting of lessons learned in life

Link the past and present

Create a legacy of caring and wisdom

Ethical Will

7 - 25

Has needed expertise and a good track record

Explains legal terms

Creates a comfortable atmosphere

Pay attentions, takes notes, asks questions

Has a professional appearance and demeanor

Provides references

What schools did the attorney graduate from?

Is the office looks organized and well-run?

Is the computer equipment up-to-date?

Are the costs are reasonable?

Checklist for Meeting With an Attorney