Finances Power of Attorney

							    Guardianship
    Power of Attorney
    Disability Insurance
    Long Term Care Insurance
Kristin Maniaci, Laura Swartz, Kevin Eaton, Katie
    Johnson, Krista Walker, Ryan McGovern,
         Jennifer Mehring, Laura Myers
GUARDIANSHIP
Guardianship
 Definition: the legal process by which a court
  determines that a person is incapable of making
  decisions about some or all areas of life.

 Guardian may also be called a conservator.


 Person with a guardian may be called a “ward”, an
  “incapacitated person”, or a “protected person”
Some Rights Affected by
Guardianship
- Residence                Firearms or weapons
- Medical treatment        Lawsuits
- End-of-life decisions    Marry
- Driver’s license         Vote
- Property decisions
Avoiding Guardianship
 Alternatives for:
   Financial decisions


      Health care decisions

      Living wills
Establishing Guardianship
 Procedure
   Talk to lawyer about your state’s requirements
   File petition
   Examination
   Notice
   Court visitor
   Lawyer and court hearing
Who can be a Guardian?
 Family members            A bank
 Friend                    A volunteer
 Public Guardian (state
  agency)



 Important undertaking
Two types of guardianship


 Guardianship of the person


 Guardianship of the estate
Guardianship of the person
List of possible responsibilities:
    - Living arrangements
   - Arrange for caregivers, social activities,
   transportation
   - Medical arrangements
   - Supervise hygiene, meals, and clothing
   - Therapies
   - Frequent visits
   - Report to the court
Guardianship of the estate
 List of possible responsibilities:
    Ward’s assets
    Accounts
    Spending the ward’s money
    Records
    Ward’s property
    Investing
    Inventories and accounts
Guardian as a Surrogate
Decision-Maker
 Substituted Judgment



 Best Interest
Goal of Guardianship
 Restore the rights of the individual who, for
  whatever reason, has had some of them
  removed by a court after due process.
Removing or Replacing a Guardian
Process
  - Petition
  - Hearing
      -Evidence
      -Court’s decision
POWER OF ATTORNEY FOR
FINANCES AND PROPERTY
Durable Power Of Attorney

 Many of us feel a well-grounded fear that we may someday
 become seriously ill and unable to handle our own affairs. Who
 would act on our behalf to pay bills, make bank deposits, watch
 over investments and deal with the paperwork that accompanies
 collecting insurance and government benefits?
Durable Power of Attorney

 Preparing a document called a durable power of attorney for
 finances is a simple, inexpensive and reliable way to ensure that
 your finances stay in the hands of a trusted person you choose.
 It's also a wonderful thing to do for your family members. If you
 do become incapacitated, the durable power of attorney will
 likely appear as a minor miracle to those close to you.
Durable Power of Attorney
 What does a durable power of attorney do?


      Gives another person legal authority to act on your behalf

      “Attorney-in-fact” is the person who is given this authority

      Stays valid even if you become unable to handle your
       own affairs (incapacitated)
Durable Power of Attorney
 When does a    durable power of attorney take effect?

     Can be drafted so that it goes into effect as soon as you
      sign it

     Can also be specified that it will not go into effect unless a
      doctor certifies that you have become incapacitated (also
      known as the “springing” durable power of attorney)
Durable Power of Attorney
 What does the attorney-in-fact do?
      Commonly, people give an attorney-in-fact broad power over
       their finances. But you can give your attorney-in-fact as
       much or as little power as you wish

           e.g. use your assets to pay your everyday expenses and
            those of your family, invest your money in stocks, bonds,
            and mutual funds, or buy and sell insurance policies and
            annuities for you.

      Whatever powers you give the attorney-in-fact, the attorney-
       in-fact must act in your best interests, keep accurate
       records, keep your property separate from his or hers and
       avoid conflicts of interest.
Durable Power of Attorney
 How to create a durable power of attorney

      All you need to do is properly complete and sign a fill-
       in-the-blanks form that's a few pages long. Some
       states have their own forms.

      After you fill out the form, you must sign it in front of a
       notary public. In some states, witnesses must also
       watch you sign the document. If your attorney-in-fact
       will have authority to deal with your real estate, you
       may also need to put a copy on file at the local land
       records office.
Durable Power of Attorney
 What happens if I don't have a durable power of
  attorney for finances?

      Your spouse, family, and/or close friends will probably have
       to go to court to ask for authority over some or all of your
       financial affairs.

      A conservator is appointed by the judge, usually in the
       beginning of the proceedings

      A conservatorship isn't necessarily permanent, but it may be
       ended only by the court
Durable Power of Attorney
 When is it a good time to use a Conservatorship?
      In a few situations, the expense and intrusion of a
       conservatorship are justified


           There's no one you trust enough to give broad
            authority over your property and finances

           You have a considerable amount of property and fear
            that family members would fight over its management
            if you appointed an attorney-in-fact
Durable Power of Attorney
 Do you still need a durable power of attorney if you
  have a living trust?

      Few people transfer all their property to a living trust,
       so a living trust is not a complete substitute for a
       durable power of attorney for finances
Durable Power of Attorney
 Can my attorney-in-fact make medical decisions on
  my behalf?

      No. A durable power of attorney for finances does not
       give your attorney-in-fact legal authority to make
       medical decisions for you

      You can, however, prepare a durable power of attorney
       for healthcare, a document that lets you choose
       someone to make medical decisions on your behalf if
       you can't
Durable Power of Attorney
 When does the durable power of attorney end?


      It ends at one of two times

           At the time of your death

           If you recovery sufficiently from your injury or
            illness and revoke it
Durable Power of Attorney
 Where can I get a durable power of attorney form?


      There is no one good source…however, about a dozen
       states, including Wisconsin, have there own fill in the
       blank forms for you to use

      They are found in each state’s statute books
DISABILITY INSURANCE
What is disability insurance?

 Weekly or Monthly
 Percentage of income or set dollar amount.
 Periods depend on accident or illness.
 The longer the benefit period, the higher the
  premium will be.
How is disability defined?
Individual policies commonly use one of two
  definitions of "disability".

 One definition is that you are unable to
  perform your own occupation
 The second definition is disability in terms of
  your inability to perform any occupation for
  which you are suited by education and
  experience.
Types of Disability
 Non-cancelable policy: premiums are fixed over
  the term of the policy. The insurer cannot jack up the
  rates, decrease your benefits, cancel or refuse to
  renew the policy.

 Guaranteed renewable policy: premiums can
  be raised so long as the change affects an entire
  category of occupations, policyholders, etc.

 Conditionally renewable policies: premiums
  can go up and coverage can be canceled in the event
  any conditions stated in the policy are triggered.
Do disability policies cover both
accident and sickness?
 No. Policies are available to cover disability
  due to an accident only or due to either
  accident or illness. It could be wallet-
  wrenching if your policy differentiates
  between accident and sickness.
State Disability Programs

 Only a handful of states (California, Rhode
  Island, New Jersey, Hawaii and New York)
  pay for off-the-job injury, sickness, and
  pregnancy, funded through employer
  contributions. The benefit amounts, the
  benefits available, the type of illnesses
  covered, and waiting periods vary greatly
  from state to state.
Is disability insurance income
subject to income tax?
 The answer depends on who pays the
  premiums.
 If you pay for the disability insurance yourself,
  out-of-pocket, the benefits you receive are
  100% tax free.
 If your employer pays the premium, you pay
  tax on the benefits you receive while
  disabled.
Exclusions
 An "exclusion" is a statement in an insurance policy
  which describes a condition or type of loss that is not
  covered by the policy.
 An exclusion is an exception to the general
  statement of coverage contained in the policy.
 However, after the policy has been in effect for a
  specified period of time (often six months to one
  year), the limitation will no longer apply and
  subsequent treatment for the preexisting illness or
  condition will be covered.
   Limitations

 A provision found in some policies which is
  similar to an exclusion is called a "limitation." A
  limitation also is an exception to the general
  statement of coverage but is applicable only
  under certain circumstances or for a specified
  period of time.
 Example
 Legal Implications
Business Requirement
 Is a business required to provide disability
  insurance? No. While it is common to provide
  "employee benefit" coverage for workers, the
  law generally does not require a business to
  do so.

 HIPAA
LONG TERM CARE
  INSURANCE
What is Long Term Insurance?
 The average cost of residing in a nursing
  home is about $55,000 per year.
 The average stay is approximately 2 ½ years.
 LTC helps to pay for the cost of care in the
  event you become unable to care for yourself
  due to illness, injury or disability.
What does LTC Insurance Provide?
Depending on the policy, LTC Insurance can
  help pay for things like:
 Nursing Home Stays
 Assisted Living Facilities
 Residential Care Facilities
 Adult Foster Care Homes
 Home Health Care Services
Who is effected by long term care?
 One half of women and one third of men age
  65 and older will spend some time in a
  nursing home.

 The average cost is about $55,000 per year
  and the average stay is approximately 2 ½
  years.
When should you purchase LTC
Insurance?
 If you do not have enough income to pay for
  the cost of long term care, then you may want
  to consider purchasing LTC insurance.
 The target market age group for buying this
  type of insurance is around 50 years old.
 The advantage of purchasing insurance at a
  younger age is the premiums are cheaper
  than if you wait until you are older or possibly
  develop a medical condition that prohibits
  coverage.
Benefits of having LTC Insurance
 LTC Insurance helps to protect your assets.
 LTC Insurance helps to provide a better
  quality of care.
 LTC Insurance provides a sense of security.
Medicare/Medicaid
 Medicare covers people over 65 years of age.
 Medicare covers some people with
  disabilities.
 Medicare only covers a portion of the costs.
 Medicaid covers low income people.
 Medicaid can cover approximately ½ of the
  cost.
Negatives of Long Term Care
 Potential for Fraud
   Constant increase in premiums


 Fixed dollar amount or percentage of cost for
  services

 What is actually being offered
     Read fine print
Precautions
 Inflation Protection
    Valuable and Important


  EX: Nursing home costs today $100/day, 8% inflation
  What will the cost per day be in 18 to 20 years?


 Dishonest Agents
   Few charged and reported for misrepresenting
    benefits or rights
Consumer Awareness
 Requiring prior hospitalization

 Requiring an acute condition before services
  will be covered

 Requiring Medicare-certified providers

 Covering only “skilled” care
Awareness Cont.

 Inability to perform 3 or more Activities of
  Daily Living (ADLs)
      ADLs: Bathing, Dressing, Toileting and Transferring (in and
       out of chair or bed)

 What actually constitutes “needed assistance”

 Service-based rather than disability-based
      THANK YOU


That ends our presentation.
At this time we would like to
  play a game to test your
 knowledge on Long-Term
Disability and Care Planning.