Program to offer guidance on legal & financial planning

While no one wants to think that one day they might be unable to make their own decisions about their health and assets, it is important to plan for the possibility – not only for those who are older and at greater risk of serious illnesses such as Alzheimer’s disease, but for everyone.

The Alzheimer’s Association program “Legal and Financial Planning for Alzheimer’s Disease,” will explore these issues in depth. Scheduled from 11 a.m. to 2 p.m. on Monday, Sept. 16, at the Alzheimer’s Association's Poughkeepsie office at 2649 South Road, it will feature guest speakers, Brian Miller, Esq., of Littman Krooks, LLP, who will speak about legal issues, and Austin Schweitzer of Edward Jones, who will discuss the financial side of things. The free
program includes lunch, which will be served at noon.

Both Schweitzer and Miller emphasized the importance of advance planning.

“We need to make sure we are preparing for the unexpected, making sure we have a legacy and estate strategy planned, and how if something happened would we protect generational wealth,” Schweitzer said.

“Ignoring these things can lead to a much more uncomfortable situation,” he added, noting that families need to meet with an adviser to make sure everyone understands the plan. “The parents might have a financial adviser, but it is important to make sure that if something happens, the kids are educated enough to understand what the next steps are.”

Any major life event – marriage, divorce, a birth, the purchase of a home -- is a good time to review your legal plans and make sure they still reflect your wishes, Miller said. He recommended it be done sooner rather than later, citing the importance not only of having a will, but also of advance directives.

“Advance directives are legal documents to help provide for your needs while you’re alive,” Miller said, noting that the three main ones are financial power of attorney, healthcare proxy and living will. “Those are the three big ones to take care of should you lose capacity. It’s important to do it while you have capacity, because if you lose capacity, and you haven’t prepared your advance directives, your family may need to seek guardianship over you, and that’s leaving it in the court’s hands who will control your property and health care decisions.”

Miller said there are also financial reasons to avoid guardianship proceedings.

“Guardianships can be quite expensive because you have all these different attorneys who are going to be paid out of your money until the court decides what’s best for you.”

He said it is better to put the plans in place even if changes are ultimately necessary.

“Let’s say you shave an early diagnosis. I recommend doing your estate planning earlier rather than later. As long as you still have the capacity, you can still change them later on. If you appoint someone who passes away, as long as you have capacity, you can redo any of your documents. They’re written on paper, they’re not written in stone.”

Another reason to make legal and financial plans is the high cost of care.

“The cost of care, especially in New York State, is astronomical,” Miller said. “Part of getting your planning done early is to protect your assets. Nursing homes can cost $20,000 per month, so even if someone has significant assets, they can go through them quickly if protections are not in place.”

Along these lines, Schweitzer cited the importance of long-term care insurance.

“Just with Edward Jones clients, there are 150,000 people who have Alzheimer’s disease. To put that even in more perspective, a lifetime cost-of-care for someone who has Alzheimer’s is around $350,000, so it’s making sure we have something put in place that can cover these costs. That goes back to long-term care, a type of insurance you pay annually,” he said, adding there are many ways to pay for it, but that annual charges are usually the least expensive.

Schweitzer said long-term care insurance protects adults with Alzheimer’s, but it could also cover other types of medical care, such as a lengthy stay in a rehab facility while recovering from a hip replacement.

“It’s essential to sit down with a financial adviser,” Schweitzer said. “Generally, we say if you’re in your mid-50s to mid-60s, that’s the ideal time to look into long-term care, but we have alternatives. They have the same purpose, but if you never need the money for that, you can take it back.”

Schweitzer added that not planning for these contingencies is a common occurrence.

“A recent Edward Jones survey found that while 81 percent of Americans believe their family is their most valuable asset, only 41 percent have some kind of insurance in place to protect them,” he said.

Miller said spouses can only access and control accounts that they jointly own and/or have signing rights for, so planning is important for their protection as well that of other family members. He said spouses also need to put plans in place in case both of them are incapacitated simultaneously, to protect their families from having to go through the guardianship process.

Miller said they can also prepare wills and/or trusts to provide for the spouse with Alzheimer’s if the healthier spouse should pass away – helping protect assets when applying for Medicaid benefits.

Costs involved

While the prospect of involving lawyers and financial planners may seem like a daunting expense, Schweitzer said there is no charge to meet with a financial adviser.

“The only time there are costs associated with it is if we have to make trades with your investments or if we are purchasing some kind of long-term care insurance, and that would be going to the insurance company,” he said.

Miller said the price of services to implement legal plans varies depending on the complexity of the situation. A low-end, basic will and advance directives costs about $2,500 to set up, but the price goes up if there are trusts involved.

“Maybe we are trying to create a Medicaid trust to protect assets. That could really vary. Every case is different. You have to look at the amount of work in involved,” he said.

While some people may hope to save money by using do-it-yourself legal documents available online, Miller said this option often ends up costing people more money than up-front legal services.

“You’re going to spend more money in the long run,” he said. “I see more harm done by those do-it-yourselfers. If it’s a crisis situation, now we’re trying to undo what they did, so you’re not just paying to make the plans, but also to fix the errors.”

Miller also emphasized the importance of consulting an elder-law attorney rather than a general one who may not know the latest changes in related laws. Miller said his law firm, Littman Krooks, specializes in elder law. While their main office is in White Plains, he said they have clients from all over the Hudson Valley, including as far north as the Rhinebeck/Red Hook area.

Although these forms have to be completed in person, Miller said he works to accommodate elderly clients with various issues.

“Especially when dealing with Alzheimer’s and dementia patients, I am aware that some of them are better at various times of day. I try to accommodate them by being in the office at the time they are best able to function,” he said.

When necessary, he said he has also gone to nursing homes to help clients get their paperwork completed.

“When you’re dealing with an elderly population, you do really have to work with them,” he said.

Schweitzer said that financial planners will work together with attorneys to make sure all bases are covered.

“We at Edward Jones partner with your attorney, estate planner, CPA, we have conjoined meetings, they handle the legal side of it, the trust, but we hold the trusts here, so you have your power team around you. We don’t set up the legal portion of the trust, but we do assist you to protect everything you have.”

Of the Alzheimer’s Association’s Legal & Financial program, Miller said, “It’s a good program. It really gets people thinking. This isn’t just for the people with Alzheimer’s. It’s the family members or really close friends who come in. It’s the caregivers that really get a lot out of this, and sometimes they’re my best allies trying to get Mom and Dad to realize the significance and the severity of not having a plan.”

About the Hudson Valley Chapter

The Hudson Valley Chapter serves families living with dementia in seven counties in New York, including Duchess, Orange, Putnam, Rockland, Sullivan, Ulster, and Westchester. To learn more about the programs and services offered locally, visit alz.org/hudsonvalley.

About the Alzheimer’s Association

The Alzheimer’s Association is the leading voluntary health organization in Alzheimer’s care, support and research. Its mission is to eliminate Alzheimer’s disease through the advancement of research, to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health. Its vision is a world without Alzheimer’s. Visit www.alz.org or call 800.272.3900.

If you go
What: Legal & Financial Planning for Alzheimer's Disease
When: 11 a.m. to 2 p.m. Monday, Sept. 16. Lunch will be provided at noon.
Where: Alzheimer's Association office, 2649 South Road, Suite 101, Poughkeepsie
Cost: Free
Contact: 800.272.3900 to RSVP.