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Senior Adults and Identity Theft – How to Protect Against It

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Image result for senior identity theftSenior adults can be more susceptible to identity theft than others. Identity theft is a crime that is on the rise. It involves a criminal stealing personal identifying information to create a new identity or to steal money from the victim. Senior adults are targeted for a few reasons. One reason is that they often have more money saved after a lifetime of working than younger people. Another factor is that personal information for elderly adults often passes through more hands, especially those in hospitals and nursing homes.  Senior adults can be more trusting of people and often do not pick up on warning signs. Finally, aging adults are far less likely to report identity theft crimes. They fear that their independence might be taken away by their loved ones. It is important for senior adults and their caregivers to know how to protect themselves against identity theft.

 

Technology

The rapid growth of technology has given identity thieves many new outlets for preying on seniors. Many thieves use email to present themselves as a reputable group or company. In the emails, they request personal information. Seniors give their information and the thief has what they need to steal from them. Identity thieves also use phone calls to gain personal information from elderly adults. They may pose as representatives from companies or the government, and ask for personal information. Unsuspecting seniors, then give them personal information. Social media is another place that identity thieves comb to find the personal information of senior adults. To protect their identity, seniors should never give any personal information through unsecured sources, such as email or over the phone. Seniors should avoid sharing personal information on social media. Even information like the exact date of birth can allow identity thieves to obtain information to steal from an unsuspecting adult.

 

Image result for identity theftPaperwork

Papers, including mail, are an excellent way for thieves to get personal information. Keep tabs on all important documents and store them safely in a file cabinet that locks or a safe. If a senior adult is in the hospital or travelling, it is important to stop mail delivery or arrange for daily pick up. Monitoring credit and bank accounts on a regular basis also helps to protect the identity of senior adults. Shred old paperwork, mail, and receipts instead of just throwing them away and be careful when throwing away receipts in places like hotels.

 

Protection

The starting point for for seniors to be protected from identity theft is to be informed. Seniors and their loved ones should educate themselves and their loved ones on common scams that identity thieves use. Another way to protect identity is through a monitoring service. For a small fee, companies can monitor online accounts and  a person’s social security number to help prevent identity theft.

 

There are also a variety of legal planning tools to help protect seniors and their loved ones from identity theft.  The way assets are titled can play a large part in whether those assets can be stolen. Planning with trusts can also provide a layer of protection against identity theft and fraud.  A thorough legal plan combined with knowledge and awareness is the best defense.

 

If you have any questions or would like additional information, please feel free to contact us.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

ADVANCED CARE DIRECTIVES: ARE THEY NECESSARY?

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Most of us don’t like to think about the possibility of something harmful happening to us or a loved one. Because of this, we rarely think about how to protect ourselves and our loved ones if the worst were to happen. However, just as it is important to buy home insurance to protect your home and auto insurance to protect your vehicle, every individual should have an advanced care directive to protect themselves if they were no longer able to make decisions for their health care, end of life, living arrangements, and various other personal matters.

 

The basic definition of an advanced care directive is a legal document or group of legal documents in which a person puts in writing what their wishes are for their health if they no longer have capacity to make these decisions for themselves. Advanced care directives are often comprised of a living will and a health care proxy. Everyone who is above the age of 18 should have one.

 

There are several key items you should include in your advanced care directive. While these can be drafted without legal help, this is a legally binding document as soon as it is signed in front of the required witnesses and it is essential you seek the advice of a legal professional when creating a directive. The most important instructions to include are which life support treatments you want, or do not want. You can provide directions on if you want all life support treatments, no life support treatments, or you may choose individual support treatments such as blood transfusions or dialysis.

 

Another facet every healthcare directive should contain is who you choose to be your health care proxy. This person will be responsible for making medical decisions on your behalf in the event you are unable to. This person should be someone who you are close to and can trust. You should also decide if you want a do not resuscitate order, which states that if your heart stops or you are no longer breathing, you want every effort or no effort made to revive you. Depending on your personal preferences, you should also include whether you would like to become a registered organ donor.

 

IMPORTANT INFORMATION TO KEEP IN MIND

 

Advanced directives are not congruent throughout the United States and laws may vary from state to state. This can often be confusing because one state’s directive may not work in another stat. To ensure your wishes are carried out, you should complete advanced care directives for all states where you spend a significant amount of time.

 

Emergency medical technicians are legally obligated to do whatever is necessary to stabilize a person and transfer them to a hospital. Therefore, they simply cannot honor your advanced care directive. Your directive will be implemented when a medical professional evaluates your condition and the underlying conditions.

 

Advanced care directives have no expiration timeline – the original will remain in effect unless you make changes to it. If you create a new directive in the same state, the previous one will be invalidated. However, it is important to notify the agent named in both the old and new document.

 

If your wishes do change, it is important to keep your advanced care directive up to date. If you choose to make changes, it is recommended that you create an entirely new document.

 

Advanced care directives are extremely important because they give you a voice when you may not be able to speak on your behalf. If you have questions about anything you’ve read or would like to meet with a legal professional to discuss how you could benefit from an advanced care directive, please do not hesitate to contact our office.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

 

What to Consider in Retirement Planning

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Most people dream of the day they can retire. The problem is that many do not move beyond dreaming to planning. Planning can be done no matter what your age, but experts encourage people to start as early as possible. Retirement planning can seem like a daunting endeavor for many people as they focus on day-to-day financial obligations. Many people have no idea where to start. A few simple questions can help people of any age plan for retirement.

 

What does retirement look like to you?

This is an essential question to ask when beginning to plan for retirement. A good starting place is to start jotting down your ideas and, if married, your spouse’s ideas for retirement. Maybe travel is in your plan. If not travel, then how do you plan to spend your time? Will you want to downsize your home? Many people find that the home where they raised their family is too large or more than they wish to maintain. Will you continue working? If so, how much do you wish to work. Part-time or contract work can give more flexibility while still providing a source of extra income.

 

What assets do you have?

This is the beginning of financial planning for retirement. Look not just at your bank account and retirement accounts, but also property you own. Other assets to consider are collections that have significant financial value. Also, take stock of other investments that will be used to fund your retirement.

 

How is your health?

Personal health can play a large factor in retirement planning. The first step is to make sure you are up to date on all of your health screenings and check-ups. Once your health has been evaluated, you can better assess your plans for retirement. Health can affect finances and quality of life in retirement. There is no better time than the present to evaluate lifestyle and, if necessary, improve health habits to improve your quality of life and extend it.

 

When should you take social security?

There is no easy answer to this question and it is really a case-by-case decision that an attorney or financial professional can help you make. In the most basic terms, waiting longer to take benefits will increase the monthly benefits you receive. However, for many, this is not an option. It is important to assess your expenses and make the most informed decision possible with help from informed professionals.

 

How can I cut expenses to save more?

This is an excellent question for people of any age to consider. Cutting expenses can provide for extra savings to throw into your retirement plan. Cutting expenses can also help when creating a budget for retirement. If you can cut in some categories, then you can reallocate to other categories in order to be able to live more comfortably in the future. Paying off debt also becomes more manageable when other expenses can be cut.

 

How do I need to plan for the unexpected?

There is never any guarantee that the retirement you plan becomes reality. Many unexpected events can and will arise in retirement. These events can put a financial strain on a family, so it is important to plan a contingency for these events. This also good time to talk family and think about future care needs. Good health today does not guarantee it in the future – in fact, the possibility of needing long term care increases with each year we grow older. Creating a plan that includes legal and financial considerations helps get all family members on the same page and can greatly reduce stress should the unexpected occur.

 

Considering these questions can help you to begin working on a retirement plan that will fit your needs in the future.  An attorney can also help you with the legal side of planning for retirement, especially when considering the possibility of needing long term care in the future. The destination (retirement) is easier when the roadmap is clear and you have a plan for bumps in the road.

 

If you have any questions about something you have read or would like additional information, please feel free to contact us.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

5 Things to Include in an Estate Plan

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Things to Include in an Estate Plan

 

Estate planning is important for people of all ages, but as we age, the need for planning becomes even more critical. Many people avoid estate planning, because they do not want to think about the end of life, failing health or disability. Others believe that an estate plan is only for rich people. However, an estate plan is helpful for the senior adult and their families regardless of overall wealth.

 

The estate is all the property owned both individually and jointly, including bank accounts, real estate, jewelry, etc., and what is owed. Without an estate plan, it is very difficult to carry out a person’s wishes and can bring on a long, drawn out probate that can be very expensive for the family. If an estate plan is in place, it can provide peace of mind for the senior adult and their family, as well as protection for the wishes of the senior.

 

Below are some basic guidelines for what should be included in an estate plan.

 

  1. Will. A will provides for an executor of the estate, who will take care of managing the estate, paying debts, and distributing property as specified. The distribution of assets can be outlined in the will. This can be as broad or detailed as a person wishes. In a will, beneficiaries and guardians for minor children should be assigned. It may not seem necessary to discuss minor children when discussing seniors and estate planning, but with the rise of grandparents raising grandchildren, this may indeed be an important part of the will. A senior adult can spell out, in the will, how they want their funeral and burial to be carried out as well.

 

  1. Living Will. A living will outlines a senior’s wishes for end of life medical care. It can include, in as much detail as the senior wishes, what medical treatments the senior would or would not like to have in specific situations. A living will takes the stress of making those decisions off of family members and helps to keep peace in families during times that can be difficult and emotional.

 

  1. Healthcare Power of Attorney. A healthcare power of attorney is also a key part of an estate plan. This legal document provides for someone to legally make healthcare decisions for a senior adult. A durable power of attorney will remain in effect for the senior if the senior becomes unable to make decisions.

  1. Financial Power of Attorney. A financial power of attorney names an agent who has the power to act in the place of the senior adult for matters relating to finances. The durable financial power of attorney stays in effect if the senior adult becomes unable to handle their affairs. By having a financial power of attorney in place, the stress and expense of a guardianship can be avoided, and the senior has the final say in who will make decisions relating to finances.

 

  1. Trust. Setting up a trust can be beneficial for the distribution of specific assets or pieces of property. The benefit of a trust is that it does not go through probate, as compared to a will. Property is still distributed at the death of the trustmaker, but it is done without the need of a court. This also allows for privacy of the trustmaker, where with a will and a probate, all of the deceased person’s assets and the the terms of their will is made public.

 

Having an estate plan is necessary if you or your senior loved one wishes to have a say in what happens in the end of life and with assets after death. Consulting and planning with an elder law attorney will help to ensure that all options are explored and the best possible solution is utilized. The elder law attorney can walk you through all of the necessary parts of the estate plan, provide explanation, and prepare the paperwork. Elder law attorneys will help take the guesswork out of estate planning.

 

If you have any questions about something you have read or would like additional information, please feel free to contact us. 

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

Lady Bird Deed – 3 Things You Should Know

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A Lady Bird Deed is a wonder of elder law. It gives a senior or couple the power to stay in control of their property, keep it in their name their entire lifetime, and give it directly to a named individual upon their passing. This property transfer happens automatically (outside of probate) where Medicaid Liens attach.

Here are three things you must be aware of to safe-guard your property.

 

  1. You are in Control:

 

Seniors routinely ask me, “What age should I give my home to my children?”

I’m not a fan of gifting your home because I’ve heard and witnessed many horror stories of mom or dad being thrown out their house by their own child.

A Lady Bird Deed can prevent that.

 

  1. Avoiding Medicaid’s look-back period:

 

Long-term care services can be very costly. The reality is many do not have enough funds accumulated during their lifetime to pay for long-term care.

In this case, you may apply to a long-term care Medicaid program to pay for care.

The issue here is, this generates a Medicaid lien that could attach to your home when it passes through the estate after the person receiving the care and benefit passes away.

Traditionally, the home property was required to be protected or gifted prior to the benefit look-back period (3 year look-back for assisted living, 5 year look-back for nursing home Medicaid).

However, a Lady Bird Deed may be placed on a property at any time regardless of the look-back period.

 

  1. To sell or mortgage your property the Grantee must also sign:

Because you’re placing a trusted individual on a home deed to receive your property once you and/or your spouse passes away, you are granting them a future interest in that property.

Should you wish to sell or mortgage your property in the future after placing a Lady Bird Deed on the house, the child or children you placed on the deed would need to sign the deed of sale (to a buyer) or deed of trust (to a bank).

This can be both an advantage or disadvantage. It is a disadvantage if your child refuses to sign off on a deed selling the property (against your wishes). However, it can be an advantage to prevent a family member from signing away their home to an undeserving swindler.

 

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

WHAT THE NEW TAX BILL MEANS FOR YOU

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Image result for 2018 tax law

Congress passed the Tax Cuts and Jobs Act in December of 2017 which is aimed at cutting taxes for corporations and all Americans. While the bulk of the legislation went into effect January 2018, most taxpayers will not see much of a difference in their taxes until 2019, when they file their 2018 taxes. However, there are several important changes seniors need to be aware of now that could affect not only their tax bill, but other items such as their health care premiums. Legislation as complicated as a new tax code can be difficult to dissect, and certainly requires the help of a tax professional. Please feel free to contact our office with any questions you may have while reading through the points below:

Before explaining the changes, let’s examine several facets important to seniors that will remain the same. The new tax bill keeps the extra standard deduction for those 65 and older, which is $1,250 for individuals, $1,550 for heads of households, and $2,500 for couples who are both age 65 or older. Also, the new plan keeps the popular medical expense deduction. This deduction is for people with incomes below $75,000 which allows them to deduct medical expenses that exceed 7.5 percent of their income for the 2017 and 2018 tax year. In 2019, this will increase to bills that exceed 10 percent of their income. Further, the new plan does not affect the way Social Security or investment income is taxed.

Perhaps the most talked about change in the new tax plan is the repeal of the individual mandate contained in the Affordable Care Act. According to the bipartisan Congressional Budget Office (CBO), by 2027, this will increase the number of Americans without health insurance by 13 million. The CBO also states that because there will be a smaller pool of insured, it expects insurance premiums in the individual market to increase by 10 percent over the next 10 years. Citizens age 50 to 64 can expect a premium increase of up to $1,500 in 2019.

Image result for 2018 tax lawThe tax bill slashes taxes across the board, contributing to a loss of $1.5 trillion in revenue to the government over the next decade. This deficit would trigger cuts to “pay-as-you-go” programs such as Medicare and Medicaid. Medicare is expected to have its budget slashed by $25 billion in 2018.

Other notable provisions that will affect senior taxpayers include the new tax brackets which range from 10 percent for the lowest earners to 37 percent for those with the highest incomes. Taxpayers can deduct state and local taxes, which may include income, sales, and property taxes. The state and local tax deductions are capped at $10,000. Alimony payments will no longer be deductible. Anyone who inherits an estate can now exempt $10 million compared to the previous $5.6 million. The charitable giving deduction will increase under the new plan until this provision expires in 2026. The mortgage interest deduction is also being updated. Now, the deduction on mortgage interest is capped to loans of $750,000 for new home purchases and interest accrued on home equity loans is no longer deductible.

Under the new Tax Cuts and Jobs Act, the majority of seniors may see their tax bills decrease. However, it is still prudent that seniors be aware of the changes that may affect them such as their health care premiums or deductions on medical expenses. If you would like to meet with a professional who will be able to assess your personal situation and provide you with guidance on how this will affect you, please don’t hesitate to give our office a call.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

Aging is a Success Story

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Aging is the sign of a successful life. After all, when you think about the alternative to aging your perspective about getting older shifts. You should start seeking self-sufficiency for your retirement years well before the age of sixty-five. But, even if you have not done so, don’t shun the planning stages. You need to address planning no matter what your age. Some preparation is better than none at all. It can provide you with some peace of mind and can take pressure off of family members who would have to make their own income adjustments to be able to provide money to support your cost of living. No one wants to become a burden to their children or otherwise extended family. It feels good to be able to provide for oneself (and one’s spouse) no matter how lavishly or modestly. It is a relief to know that you have solid plans as well as contingency plans for the future. Although it can be hard work and tough to realize how much it will take to cover your future living expenses, putting off the planning stage does not lead to easier or better outcomes.

First of all, consider your location. Many seniors prefer the idea of living out their lives in their own home but there is much to consider about that approach. Are you close to family members or someone willing to help drive you to doctor appointments and grocery stores when you are no longer able? Can your home accommodate a wheel chair; is there a bedroom on the first floor or is there a way to get up and down the stairs? How expensive are the property taxes in your area? How mild is the weather? If you want to go to a retirement community, what locations are most affordable as well as most desirable? How would you transition to less independent living over time?

Once you know your location goals, do some worst-case planning. Adverse health and unforeseen life events can ravage your finances unless you are already managing a sizeable sum of assets or have incorporated proper planning. You might look for advice as to how to turn a nest egg into retirement income, or how to add to your long-term insurance care, or to establish some long-term insurance care. Think particularly about in-home care should your goal be to stay in your own home as you age.

You need to know if your state has approved the Long-Term Care Partnership Program, a joint federal-state policy initiative to encourage the purchase of private long-term care insurance. A professional can explain to you how it can protect some of your assets if you would require extensive care in the future, for instance for Alzheimer’s disease, which could potentially exhaust your private insurance policy benefits and require you to apply for Medicaid. A professional can also advise you if there are any federal or state tax incentives available to you for long-term care partnership insurance. You can also discuss implementing some additional life insurance that can remain in force until you are eighty. It can help a spouse with extra money should something happen to you. In the meantime, both of you could sleep better at night knowing the insurance policy is in place. The point is, you need to examine some potential worst case expenditure scenarios and how you would be able to meet the needs of your care should the moment arise.

Your aging is a success story. Embrace how you prepare for your senior years no matter what your age is, and the sooner the better! Retirement requires careful thought, planning and decision making for the best outcome possible for you and your loved ones.

Contact our office today and schedule an appointment to discuss how we can help you with your planning.

Facts about Veterans Benefits for Veterans and their Families

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  1. The term “Veterans Benefits” is somewhat misleading. Only a percentage of the people covered by VA benefits served formerly in the Armed Forces. The Department of Veterans Affairs provides vocational rehabilitation, health care, employment services, pensions and more to both active and former service members, as well as their spouses, widows, parents and children.

 

  1. When you make up your mind to apply for benefits from the Department of Veterans Affairs it is beneficial to have all of your important documents and forms ready, because they will most certainly be needed. Relatives of Veterans who wish to apply for benefits should have any relevant marriage certificates, birth certificates, and the Veteran’s birth and death certificates if necessary. You will also need the Veteran’s discharge papers.

 

  1. Find out if you are eligible for enrollment to receive health care from the Department of Veterans Affairs. This is easily done at the VA website vets.gov, or via telephone at 1-877-222-VETS (8387) where you will be asked no more than 15 questions and be told whether or not you are eligible to receive benefits. You may also mail an application to the Health Eligibility Center, or apply in person at a physical Veterans Affairs location. Veterans and their families should be aware that they may be eligible for care at a non-VA health care provider if certain conditions/hardships are met, such as if they live more than 40 miles from the nearest VA medical facility. The VA will help you determine which “priority group” you best fit in, ranging from 1-8 depending on various conditions, to best give you quality care, as determined by their standards.

 

  1. Although it may first seem unlikely, the Department of Veterans Affairs offers services to Veterans and their spouses that go far beyond simple health care. The VA can help you secure a house for your family via specialized home loans or purchase a car. Naturally these programs take into account the various levels of physical disabilities with which the recipient may struggle. For example, the VA can help you modify your home to be wheelchair accessible, should you require.

 

  1. The words “GI Bill” probably bring to mind images of baby boomers’ parents and the post-World War II program designed to help returning Veterans receive a college education, but did you know that the GI Bill still exists? The Forever GI Bill, the Harry W. Colmery Veterans Educational Assistance Act, is a comprehensive program that offers post-9/11 Veterans a wide variety of tools to help them get their degree, including a monthly housing allowance and priority enrollment in classes wherein Veterans are allowed to register before the general public.

 

  1. Although we probably do not like to think about it, there are thousands of servicemen and women who do not return home from the field of battle. For these heroes, the Department of Veterans Affairs offers funeral services and/or burial in a national military cemetery, whereupon the gravesite will be maintained in perpetuity.

 

Contact our office today for more information on benefits for war-time Veterans.

Memory Care Innovations

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Within the next 20 years, the need for memory care housing options will become more necessary than ever. In 2016 alone, more than 2.5 million Baby Boomers turned 70 years old, the youngest boomers hitting age 52. With advancing age comes an increased risk of Alzheimer’s disease and other dementia. Recent estimates state that the number of Americans living with Alzheimer’s disease could potentially triple from the 5 million sufferers in 2013 to around 14 million by the year 2050. By the year 1976, Alzheimer’s disease was officially identified as the most common cause of dementia. In most cases in the past, people living with Alzheimer’s disease would stay in a typical nursing home or assisted living community, receiving the same basic care as other residents. However, because so much more is being discovered about the disease in recent years, the way we think about caring for people with dementia is changing.

Some of the most recent innovations in memory care include:

Alternative Therapies
Music, art, and even pet therapy are often provided to residents with dementia as a way to stimulate memory, cognitive skills, and communication. In addition, these therapies can help improve residents’ physical and social skills, as well as reduce their stress and ease aggressive behaviors.

Dementia Staging
Dementia staging refers to the ability to understand exactly what stage of the disease a person is in to help provide the correct level of care needed. This person-centered approach sees each individual as unique and focuses on what they can do, rather than what their limitations may be.

Specialized Technology
As smartphone and computer technology advances, so does technology for dementia sufferers. GPS tracking devices for those who are at risk of wandering, emergency response devices to detect warning signs of illness or a fall, and the use tablets to play brain games or keep in touch with distant relatives, technology makes memory care today more efficient and streamlined. Technology is also beneficial for the person with memory care issues as it allows their cognitive abilities to continue functioning at a high level.

Unique Housing Designs
While many senior living communities have a special area designated for those living with Alzheimer’s or dementia, some communities today go above and beyond, providing just one floor to these residents. Intimate homes are offered that house up to 10 residents with a staff that specializes in memory care. These types of environments nurture a familial experience and build deep relationships between the residents and the caregiving team. The residents are allowed to maintain their own personal routines and are encouraged to continue to pursue their interests.

Dining Experience
In a central dining area setting, everyone sits around a single table for meals. The seniors are encouraged to engage in conversation and develop friendships.

Colors and Patterns
Because people see more yellow as they get older, gray was often chosen as the common denominator for institutional living. Instead, using green or yellow paint enhances colors as visualized by seniors. Coral blended with a bit of yellow makes a nice combination and engages the senses.

Memory Recall
Nostalgia-evoking displays throughout the halls, such as workbench stations or wooden coat racks draped with glamorous dresses from a distant era, are meant to stir residents’ memories. Personal touches like family photo cases near the entrances of their rooms brighten otherwise unremarkable hallways.

As research continues for this disease, more and more innovative ideas are uncovered that can help seniors with memory care issues and can help care givers of those individuals.

If you would like more information about caring for a loved one who suffers from memory issues, contact our office for an appointment today.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

Changes to Social Security in 2018

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Related image There is good news! Social Security payments will increase by 2% in 2018. The bad news? It’s not enough to keep up with inflation.

Many senior citizens will be happy to learn that the amount of money they will receive in their social security checks will increase two percent in 2018. This averages about $27.38 per month, or $329 per year under a new Cost of Living Allowance (COLA). “It will help them make ends meet,” says Erin Parrish of AARP Minnesota, pointing to an example of how the modes increase may allow a person to purchase a month’s worth of medication.

Unfortunately, this modest increase in benefits, the largest since 2012, still does not allow many seniors to keep up with the ever-rising costs of medical care. As the age of retirement has continued to rise, the Social Security Administration (SSA) has continued to warn that the present rate of depletion of social security funding will result in the fund being empty by 2034.

Other changes to social security in 2018 include a slightly higher tax cap. At present, Americans in the workforce who pay social security taxes give up 6.2% of their pay to Social Security if they make up to $127,200. That cap will slightly increase to $128,700 in 2018.

The SSA has announced that the maximum possible benefits that a person can receive increased from $2,687 per month to $2,788 per month, or $33,456 per year. Additionally, seniors who continue to work while receiving Social Security can earn up to $17,040 without being penalized. This is a modest increase from $16,920 in 2017. Likewise, disability payments will increase in 2018 by $10 per month.

One of the biggest changes to Social Security is that it no longer mails paper statements. Beneficiaries in 2018 are now required to have an online account at ssa.gov. This development may be quite irksome for senior citizens who are not tech-savvy. To make matters more complicated, the SSA will require two-step verification for security purposes which will likely require more than one pin or password to access an account. While security is always a concern, some seniors may wish to have a trustworthy friend or relative walk them through the procedure the first few times.

So, there are some modest increases coming to various aspects of social security benefits in 2018 that will be welcome for millions of Americans. What has long been “the bedrock of American financial security” will continue to be so for the short term but what happens after 2034? With the social security predicted to be depleted, what will our seniors do then?

The aging population needs to take steps today to ensure their financial security. Look at alternative means for future income such as safe investments and early planning. They should take these actions while they are still working. Go one step further and work with an elder law attorney to create a strategy that will help protect assets and allocate funds for long term care. It’s crucial to plan as early as possible, contact our office today for an appointment.

Greg McIntyre

greg@mcelderlaw.com

Elder Law Attorney
McIntyre Elder Law
123 W. Marion Street

Shelby, NC 28150

704–259–7040

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