POSSIBLE IN PART BY THE KET ENDOWMENT FOR KENTUCKY PRODUCTIONS.

>> Renee: GOOD EVENING WELCOME TO END OF LIFE AND ESTATE PLANNING CALL IN.

A KET FORUM.

I'M RENEE SHAW THANK YOU FOR JOINING US TONIGHT.

IF ONLY LIFE GOT EASIER AS WE AND OUR LOVED ONES ENTER THE GOLDEN YEARS.

MORE OFTEN THE QUESTION SENIORS FACE AS THEY AGE GROW COMPLEX.

PREPARING WITH THE RIGHT DOCUMENTATION CAN PREVENT HARDSHIP FOR FAMILIES DOWN THE ROAD.

ALONG WITH FEELING OVERWHELMED BY THE TASK OF GETTING OUR AFFAIRS IN ORDER, WE OFTEN DON'T KNOW WHERE TO START.

HELPING TO HELP YOU SORT OUT THE KINDS OF LEGAL, MEDICAL AND FINANCIAL DECISIONS YOU SHOULD PREPARE SUCH AS WILLS, ESTATE PLANS AND MEDICAL DIRECTIVES REGARDLESS OF AGE THAT'S THE GOAL OF TONIGHT'S PROGRAM.

WE HAVE A PANEL OF ELDER LAW ATTORNEYS, SOCIAL WORKERS AND FINANCIAL PLANNERS ASSEMBLED IN THE STUDIO AND STANDING BY IN OUR STUDIO NEXT DOOR TO TAKE YOUR QUESTIONS.

JOINING ME TONIGHT ARE AMY DOHERTY ATTORNEY AND MEMBER OF BLUEGRASS ELTDER LAW PLLC.

LIZ FOWLER PRESIDENT AND C.E.O.

OF BLUEGRASS CARE NAVIGATORS.

PARTNER WITH KENTUCKY ELDER LAW.

LINDSEY MEDLEY SOCIAL WORKER AT THE LEXINGTON SENIOR CENTER.

MIKE McKENNELLY IMPORTANT WITH ELDER LAW OF KENTUCKY AN SCOTT AN ELDER PLANNING SPECIALIST.

MY COLLEAGUE KC PARKER BELL IS STANDING BY IN OUR STUDIO WITH OUR PHONE BANK VOLUNTEERS READY TO TAKE YOUR CALLS ABOUT THESE ISSUES AND OUR GRATITUDE FROM VOLUNTEERS FROM THE GRASS CARE NAVIGATORS AND LEGAL AID OF THE BLUEGRASS FOR HELPING US OUT TONIGHT.

THIS CALL IN IS PART OF KET'S AGING INITIATIVE CALLED NEXT CHAPTER THAT FOCUSES ON THE REWARDS AND CHALLENGES OF GROWING OLDER.

WELL, THANK YOU ALL FORKING WITH HERE AND THANK OUR NEXT-DOOR NEIGHBORS AS WELL.

WE EXPECT A LOT OF QUESTIONS FROM VIEWERS ABOUT ELDER LAW ISSUES.

I WANT TO START WITH YOU MS. DOHERTY ABOUT THE FUNDAMENTALS.

WE HAVE GOTTEN QUESTIONS ABOUT I DON'T KNOW WHERE TO START.

DO I DO MY WILL?

IS THERE ANY PARTICULAR ORDER?

>> THERE'S NOT A PARTICULAR ORDER.

WHAT THERE IS IS A NEED TO UNDERSTAND WHAT YOU YOUR ASSETS ARE AND HOW THEY CAN BE USED TO BEST HELP YOU AND YOUR LOVED ONES AND HOW THE BEST CAN BE TRANSITIONED AT THE END OF YOUR LIFE IF YOU DON'T USE THEM ALL THERE IS A LOT AT THAT TIME CAN BE DONE.

I START WITH CLIENTS HOW THEY LENGTHY CONSULTATION WHICH I GO OVER THE CLIENT'S GOAL.

DO THEY WANT TO LEAVE MONEY TO THEIR KIDS?

DO THEY WANT TO SPEND IT ON ON THEMSELVES?

WHAT CARE DO THEY WANT?

AND LEARNING WHAT THEIR ASSETS ARE SO WE CAN MAKE A PLAN THAT MEETS THEIR GOALS AS A BEST PLAN FOR THEM.

>> Renee: THE FEAR WE HAVE WE ARE GOING TO HAVE MORE LIFE THAN MONEY TO LIVE IT.

OR GET SICK AND NOT BE ABLE TO TAKE CARE OF OURSELVES.

WHAT DO YOU ADVISE AND THE CHECKLIST YOU PROVIDE TO CLIENTS?

>> VERY DIFFICULT TO DETERMINE EXACTLY WHEN THAT TIME IS GOING TO COME.

AND LONGEVITY IS ONE OF THOSE QUESTIONS ONE OF THE ASSUMPTIONS WE HAVE TO INCORPORATE INTO A FINANCIAL PLAN.

WE USE THE ACTUARIAL CALCULATIONS BY THE SOCIETY OF ACTUARIES TO AT LEAST GIVE US WHAT MEDIAN AGE IS AND WHAT THE PROBABILITIES ARE THAT WE WILL LIVE TO BE 100.

WE PLAN FOR OUR CLIENTS TO LIVE TO 100 AND HAVE THE MONEY TO GET THERE.

SO OFTEN I HEAR I'M NOT GOING TO MAKE IT THAT FAR.

THE CALCULATION THERE IS A 4% CHANCE THAT I WILL MAKE IT TO 100.

>> Renee: 4%.

OKAY.

ALL RIGHT.

WELL, THAT IS A DIFFERENT TOPIC, ISN'T IT.

HERE ARE QUESTIONS THAT HAVE COME IN TO US ALREADY.

THERE IS A COUPLE THE MAN HAS COMPLEX MEDICAL NEEDS AND HIS SPOUSE IS CURIOUS WHETHER THEY SHOULD DIVORCE SO WHEN HER HUSBAND ENTERS A NURSING HOME THE FACILITY CANNOT GET THEIR RESOURCES.

IS THAT A GOOD IDEA?

>> I THINK IT'S IMPORTANT TO FOR MARRIED COUPLES IN PARTICULAR TO LOOK AND UNDERSTAND THE RULES FOR THE PROGRAMS THAT HELP PAY FOR LONG-TERM CARE WE CAN PAY THROUGH RETIREMENT OR INVESTMENTS MEDICAID IS THE PRIMARY PAYER SOURCE.

MARRIED COUPLES DON'T KNOW MANY ASSETS MAY BE PROTECTED ALREADY THROUGH THE RULES THAT APPLY TO THAT PROGRAM.

IT IS A FEDERAL PROGRAM BUT EACH STATE HAS A DIFFERENT SET OF RULES.

MANY MARRIED COUPLES DON'T KNOW THAT THE HOME IS ALWAYS PROTECTED WHEN THERE IS A MARRIED COUPLE AND ONE NEEDS NURSING HOME CARE THE STATE DOESN'T MAKE YOU SELL YOUR HOME AND SPEND THOSE FUNDS AS LONG AS ONE OF THE MEMBERS OF THAT COUPLE ARE LIVING IN THAT HOME.

IN KENTUCKY, RETIREMENT ACCOUNTS ARE PROTECTED ASSETS.

THOSE DON'T HAVE TO BE SPENT DOWN AND HALF OF THE OTHER ASSETS ARE PROTECTED UP TO A MAXIMUM OF $150,000.

SO THERE MAY BE OPPORTUNITIES WHERE DIVORCE IS AN OPTION BUT MANY TIMES WE ARE ABLE TO DO PLANNING THAT ALLOWS THAT COUPLE TO SAVE THOSE RESOURCES.

KEEP THEM STILL AVAILABLE TO THEM.

AND BE ABLE TO ACCESS PROGRAMS THAT HELP PAY FOR CARE.

>> Renee: ALONG THOSE LINES THIS FROM ANOTHER CALLER MY MOTHER HAD DEMENTIA AND LIVED WITH US FOR THREE YEARS BEFORE I HAD TO PUT HER IN A NURSING HOME.

I PAID THEM $7,000 A MONTH UNTIL HER CASH RAN OUT THEN I HAD TO SELL THE FAMILY HOME AND PAID ALL OF THAT EXCEPT $2,000 TO THE NURSING HOME IS THAT A TYPICAL EXPERIENCE?

>> NOT IF THEY DO THE PLANNING AHEAD OF TIME AND CALL AN ELDER LAW ATTORNEY.

I FEEL LIKE I'M ALWAYS ON A SOAPBOX POUNDING THE TABLE.

IF YOU ARE OLD ENOUGH THAT YOU CAN'T DIE YOUNG, YOU BETTER CALL AN ELDER LAW ATTORNEY.

THERE IS A PANEL FULL OF GREAT ONES IT'S HARDER TO FIND A BAD ONE THAN IT IS TO FIND A GOOD ONE.

IT'S EASY TO FIND GOOD ATTORNEYS AND PEOPLE DON'T DO IT.

>> Renee: PEOPLE WORRY ABOUT THE COST AND HEAR ATTORNEY THAT IS BILLABLE HOURS BEYOND WHAT I MAYBE ABLE TO AFFORD.

>> MY THEORY WHY PEOPLE DON'T CALL ATTORNEYS CHANGES DAILY BASED ON WHO I'M TALKING TO.

SOME PEOPLE THINK THEY ARE NEVER GOING TO DIE OR NEVER LIVE LONG TO HAVE TO WORRY ABOUT IT.

AND SOME PEOPLE DON'T LIKE ATTORNEYS.

>> Renee: WHAT IS THE AGE YOU SHOULD BE MAKING THESE KIND OF DECISIONS AND HAVING THESE CONVERSATIONS?

>> IT DEPENDS.

I'VE GOT CLIENTS THAT ARE 18 GOING OFF TO COLLEGE.

AND THEY DECIDE THAT THEY WANT THEIR PARENTS TO BE ABLE TO MANAGE THEIR CHECKBOOK AND TALK TO THE DOCTOR IF THEY GET SICK.

SO WE DO POWERS OF ATTORNEY TO ENABLE THAT TO HAPPEN.

AND THEN I'VE GOT CLIENTS THAT ARE ESSENTIALLY AT DEATH'S DOOR AND WE CAN STILL DO THINGS THAT ARE HELPFUL FOR THEM.

IT JUST DEPENDS.

I LIKE TO SEE CLIENTS THAT ARE NEEDING SOME ROBUST PLANNING IF THEY ARE IN THEIR 65, 75, AGE THERE IS A LOT THAT WE CAN DO.

>> THAT'S WHAT I WAS GOING TO SAY FOR LONG-TERM CARE PLANNING PURPOSES THE NURSING HOME CONCERNS, 65-75 I THINK IS THE SWEET SPOT TO REALLY DO A LOT OF THAT PLANNING.

UNLESS THEY HAVE A CHRONIC HEALTH CONDITION THAT WARRANTS AN EARLIER CONSULTATION.

BUT MOST ELDER LAW WE ARE BLESSED IN THE STATE OF KENTUCKY THAT WE HAVE AN EXCELLENT ELDER LAW BAR, THE ATTORNEYS THAT PRACTICE IN THIS AREA, WE'RE VERY COLLEGIAL.

WE ARE ALWAYS HAPPY TO GET YOU IN TOUCH WITH SOMEBODY IN YOUR AREA EVEN IF YOU CALLED ONE OF US THAT COULD GIVE YOU THAT CONSULTATION.

AND ALMOST ALL OF US DO A FREE CONSULTATION.

>> I TELL EVERYBODY, EVERY ELDER LAW ATTORNEY IS AN ESTATE PLANNING ATTORNEY BUT NOT EVERY ESTATE PLANNING ATTORNEY IS AN ELDER LAW ATTORNEY.

IF YOU NEED THE BASIC POA'S THE STUFF THAT EVERY PERSON SHOULD HAVE THEN WE CAN ALSO DO THAT.

BUT AS FAR AS WHAT WE CONSIDER OUR BREAD AND BUTTER WHAT WE'RE TALKING ABOUT HERE THIS EVENING, 65 AND OLDER, I GUESS.

>> Renee: LET ME GET TO A COUPLE TERMS POA, POWER OF ATTORNEY.

WE WANT PEOPLE TO UNDERSTAND WHAT THESE TERMS MEAN.

WE THROW THEM AROUND LIKE THEY ARE COMMON LANGUAGE AND WE DON'T HAVE A CLEAR UNDERSTANDING.

DEFINE THAT.

>> THAT IS ONE OF THE BIGGEST MISTAKES WE SEE PEOPLE MAKE IS THAT THEY DON'T HAVE A DURABLE POWER OF ATTORNEYTH PLACE WHEN ONE OF THE FAMILY MEMBERS BECOMES INCAPACITATED.

>> Renee: THAT IS THAT DURABLE.

>> LASTS FOR THE DURATION OF YOUR LIFE.

SO EASTERN IF YOU BECOME INCAPACITATED WHEN YOU REALLY NEED IT.

WE TELL PEOPLE YOU CAN'T BUY FIRE INSURANCE WHEN YOUR HOUSE IS ON FIRE.

YOU HAVE TO GET THESE DOCUMENTS AHEAD OF TIME BEFORE YOU ARE INCAPACITATED SO YOU HAVE IT READY TO GO.

WE HAVE COURT MECHANISMS TO DEAL WITH SITUATIONS WHEN SOMEONE DOESN'T DO IT AHEAD OF TIME.

>> I HAVE HORROR STORIES TO TELL.

>> WE COULD GO ALL NIGHT OR THE HORROR STORIES.

>> Renee: AND FOR YOU, LINDSEY, YOU DEAL WITH PEOPLE WHO HAVE SOCIAL SERVICES AND USING SOCIAL SERVICES GIVE US YOUR PERSPECTIVE.

>> IT'S IMPORTANT TO REMEMBER A HEALTHCARE IS YOUR COMBAT AND POWER OF ATTORNEY BUT HEALTHCARE SURROGATE IS THEY ARE DEALING WITH THE HEALTHCARE TEAM.

WHEREAS A POWER OF ATTORNEY YOU ARE DEALING WITH THE PERSON THAT YOU DESIGNATED AS YOUR POWER OF ATTORNEY.

>> Renee: ARE THOSE TWO DIFFERENT DOCUMENTS.

>> THOSE ARE TWO DIFFERENT DOCUMENTS.

>> Renee: REPEAT THAT AGAIN.

>> YOU HAVE DURABLE POWER OF ATTORNEY AND REGULAR POWER OF ATTORNEY WHICH COVERS YOUR FINANCIAL.

>> MONEY VERSUS HEALTH.

>> AND THEN HEALTHCARE SURROGATE IS MORE WITH YOUR HEALTH TEAM.

AS OPPOSED TO A POWER OF ATTORNEY WHICH IS WITH THE PERSON THAT YOU DESIGNATED.

>> Renee: LIZ.

>> IT'S IMPORTANT BECAUSE YOU CAN HAVE SOMEONE THAT YOU DESIGNATE TO MAKE YOUR HEALTHCARE DECISIONS ON YOUR BEHALF AND SOMEONE THAT YOU DESIGNATE FOR YOUR FINANCIAL MATTERS IF YOU ARE INCAPACITATED.

>> IT'S IMPORTANT TO HAVE A SECONDARY IN CASE THAT FIRST PRIMARY.

>> TWO SEPARATE PEOPLE.

>> IF YOU ARE LUCKY TO HAVE MORE THAN ONE PERSON.

>> Renee: WHAT IF THE PERSON THAT YOU'VE DESIGNATED.

>> IS INCAPACITATED THEMSELVES OR NO LONGER AROUND?

YOU NEED AN ALTERNATE IF YOU DON'T HAVE AN ALTERNATE IT'S LIKE YOU DON'T HAVE THE DOCUMENT AT ALL.

>> Renee: CAN YOU LIST THE ALTERNATE WITHIN THE SAME DOCUMENT.

>> A LOT OF MARRIED COUPLES ASSUME THAT THEY CAN DO EVERYTHING FOR EACH OTHER.

MY PARENTS WHO I'M SURE ARE WATCHING RIGHT NOW I'VE BEEN MARRIED 65 YEARS AND THEY THOUGHT THEY CAN DO ANYTHING FOR EACH OTHER.

BUT THEY DO HAVE TO NAME EACH OTHER IN THAT DOCUMENT.

MY HUSBAND, MY WIFE CAN HANDLE FINANCES FOR ME IF I'M INCAPACITATED THEY CAN MAKE A MEDICAL DECISION FOR ME.

AN ALTERNATE AFTER THAT MAYBE AN ADULT CHILD.

BUT, YEAH, YOU CAN LIST MULTIPLE PEOPLE IN THAT DOCUMENT.

I TELL PEOPLE I DON'T CHARGE EXTRA IF YOU WANT TO ADD MORE PEOPLE.

I RATHER YOU HAVE TOO MANY THAN NOT ENOUGH.

>> IF YOU DON'T WANT SOMEBODY MAKING THE HEALTHCARE DECISIONS FOR YOU YOU CAN GO AHEAD AND MAKE THEM YOURSELF.

IF YOU WANT A DO NOT RESUSCITATE.

IF YOU DON'T WANT TO BE PUT ON A VENTILATOR YOU CAN MARK WHERE THEY DON'T GO TO YOUR FAMILY AND ASK THEM THEY GO TO THE DECISIONS.

>> YOU DON'T WANT THE JUDGE TO MAKING THE DECISIONS OR THE COUNTY ATTORNEY THAT YOU MAY OR MAY NOT HAVE VOTED FOR.

YOU NEED TO MAKE THEM NOW.

>> Renee: WE WILL GO TO CASEY PARKER BELL NEXT DOOR.

CASEY?

>> THANKS, RENEE.

JONATHAN WE APPRECIATE YOU ANSWERING CALLS LET'S GIVE EVERYBODY A CHANCE YOU WORK IN ESTATE PLANNING AND INCOME PROTECTION WHEN PEOPLE ARE STARTING TO MAKE THE PLAN WHAT IS THE CHECKLIST?

>> THE FIRST THING TO DO IS TO FIRST START EARLY IN THE PROCESS.

TIME IS NOT GOING TO BE ON YOUR SIDE.

SECONDLY TRY TO HIRE A FIDUCIARY ADVISER AS OPPOSED TO A PRODUCT SALES PERSON BECAUSE THEY HAVE A HIGHER STANDARD OF CARE.

AND LASTLY THINK INTERGENERATIONALLY HOW DECISIONS WILL AFFECT YOUR KIDS AND GRANDKIDS FOR YEARS TO COME.

>> WHAT IS THE BIGGEST QUESTION PEOPLE SHOULD BE THINKING ABOUT WHEN THEY TALK TO SOMEBODY?

>> WHY DIDN'T I START SOONER.

PEOPLE ARE AFRAID BY THE 0 PROCESS BUT YOU CAN START TNTD THINKING ABOUT WHAT IS GOING TO HAPPEN TO ME WHEN I'M OLDER AND PASS AWAY.

>> JONATHAN THANK YOU FOR ANSWERING QUESTIONS WE APPRECIATE YOU.

>> Renee: WE WANT TO REMIND OUR VIEWERS THE NUMBER IS ON THE SCREEN, 1-800-944-4664 AND E-MAIL PUBLIC AFFAIRS AT KET.ORG OR X AT KET.

WE WILL GET TO YOU TONIGHT AND WE THANK YOU SO MUCH FOR YOUR INTEREST AND THANK YOU FOR WATCHING.

SO WE'VE GOTTEN A COUPLE GOOD QUESTIONS COMING IN.

WHAT OBLIGATION DO GROWN CHILDREN DESIGNATED WITH POWER OF ATTORNEY HAVE TO PAY OFF DEBTS OF DECEASED PARENTS?

THIS IS FROM KATHLEEN.

I WILL REPEAT THAT WHAT OBLIGATION DO GROWN CHILDREN DESIGNATED WITH POWER OF ATTORNEY HAVE TO PAY OFF DEBTS OF DECEASED PARENTS?

>> NONE.

UNLESS THEY HAVE ACCEPTED THE OBLIGATION.

SOMETIMES SOMEBODY WILL SIGN UP ON A CREDIT CARD AND COSIGN OR SOMETHING ALONG THAT LINE.

>> GET INSIDE ASSISTED LIVING THEY WILL ACCIDENTAL PROMISE TO PAY MOM'S BILLS OR SOMETHING LIKE THAT.

>> Renee: IS THERE A DOCUMENTATION AT THE ASSISTED LIVING FACILITY THAT YOU WOULD HAVE TO -- >> MAKE SURE HOW YOU ARE SIGNING.

IF I'M MY MOM'S POWER OF ATTORNEY I WOULD SIGN JUDE DIT CLARK THAT IS A FORMAL WAY OF DOING IT.

AT A MINIMUM MISTY, POA THAT POWER OF ATTORNEY DESIGNATION INDICATES I'M NOT TAKING ON PERSONAL LIABILITY I AM ACTING AS AN AGENT FOR ANOTHER PERSON SO I'M PROTECTED AND I'M NOT ASSUMING THAT I WANT TO PAY FOR THE ASSISTED LIVING OR THE HOSPITAL BILL OR THE NURSING HOME WHICH NURSING HOMES NOW ARE 10 TO 14,000 A MONTH.

SO, OF COURSE, THAT'S SOMETHING YOU WANT TO MAKE SURE THAT YOU ARE GETTING GOOD GUIDANCE WE MAKE SURE OUR CLIENTS UNDERSTAND HOW TO USE THAT POWER OF ATTORNEY DOCUMENT.

>> IF YOU ARE AN AGENT OR POWER OF ATTORNEY FOR SOMEBODY YOU ARE STANDING IN THEIR SHOES.

SO YOU ARE NOT TAKING ON OBLIGATIONS WITH YOUR OWN ASSETS TO PROVIDE THE CARE THAT YOUR ARRANGING FOR THEM.

SO THAT IS AN IMPORTANT PIECE TO UNDERSTAND.

>> IF YOU DO ACT, THERE ARE FIDUCIARY DUTIES THAT GO ALONG WITH ACTION.

BUT YOU ARE NOT UNDER AN OBLIGATION TO ACT.

I TELL PEOPLE -- >> YOU ARE NOT FINANCIALLY OBLIGATED.

YOU ACT WHEN YOU SIGN YOUR PERSON INTO A FACILITY.

BUT YOU ARE NOT AGREEING TO PAY FOR IT.

YOU ARE AGREEING TO BE THERE AND SIGN THE PAPERS AND MAKE SURE THAT THEY'VE GOT WHAT THEY NEED CLOTHES WISE AND OTHER THINGS LIKE THAT.

BUT YOU ARE NOT TAKING ON FINANCIAL OBLIGATIONS FOR THEM.

>> Renee: ANYTHING ELSE THERE?

>> BE CAREFUL WHAT YOU ARE SIGNING I HAVE SEEN PEOPLE THAT HAVE SIGNED PERSON GUARANTEES NOT UNDERSTANDING WHAT THEY WERE DOING.

SO AGAIN.

>> AVOID THE WORD GUARANTOR.

>> AND YOU SIGN STILL AS LONG AS YOU ARE SIGNING AS POWER OF ATTORNEY IF I SIGN MISTY ON A GUARANTEE LINE SHE GUARANTEED THAT IF I SIGN JUDY CLARK, POA I'M DOING IT FOR HER.

LIKE THAT'S CLEAR.

YOU TRY TO MAKE IT CLEAR WHAT YOU ARE DOING.

WE DON'T WANT PEOPLE TO BE AFRAID TO HELP TAKE CARE OF THEIR PARENTS THEY NEED YOU IN THAT ROLE.

AS LONG AS YOU ARE MAKING IT CLEAR, THERE ARE TIMES THAT A LOT OF PAPERWORK YOU GUYS KNOW IN THE CARE INDUSTRY A LOT OF THE PAPERWORK IT'S OVERWHELMING WHEN SOMEONE HAS TO SIGN IN TO PARTICULARLY REHAB AND THOSE THINGS.

AND IT'S SO MANY PAGES THAT THEY CAN ACCIDENTALLY SIGN SOMETHING SO THEY WANT TO BE CAREFUL THAT THEY ARE ALWAYS SIGNING AND WHAT HAT AM I WEARING?

THE DAUGHTER?

ARE YOU SIGNING IN MOM?

YOUR MOM.

>> Renee: WHEN THEY HAVE PAPERWORK CAN THEY SAY CAN I TAKE THIS TO MY ELDER LAW ATTORNEY.

>> THEY BETTER.

>> BEFORE I SIGN ANYTHING.

>> ABSOLUTELY.

AND BE SURE THAT YOU ASK FOR IT IN A LANGUAGE THAT YOU UNDERSTAND.

IN CONVERSATION THAT YOU UNDERSTAND.

AND IF YOU DON'T UNDERSTAND IT'S OKAY TO SAY I DON'T UNDERSTAND I NEED SOMEONE TO HELP ME.

>> AN ANALOGY NO BUSINESS OWNER IN THE WORLD WOULD SIGN A LEASE TO PAY UPWARDS OF $10,000 A MONTH IN PERPETUITY UNTIL YOU DIE WITHOUT THEIR LAWYER GLANCING AT THE CONTRACT BEFORE THEY MOVE IN.

THE FACILITY HAS LAWYERS THE DOCTORS ALL HAVE LAWYERS.

BUT YET YOU WILL SIGN A STACK OF PAPERWORK BECAUSE YOU ARE UNDER SO MUCH STRESS.

MOM'S SICK AND WHAT IF THEY DON'T TAKE MOM IF I DON'T SIGN.

>> Renee: YOU THINK THIS IS HOW IT GOES.

YOU DON'T QUESTION WHAT YOU THINK IS NORMAL.

>> CLOSING FOR A HOUSE.

>> SAY WHEN MY PARENTS DIE THEY'VE GOT ALL THIS DEBT AM I GOING TO BE OBLIGATED FOR IT?

NO.

YOU MAY NOT HAVE AN INHERITANCE BUT YOU ARE NOT GOING TO INHERIT DEBT.

>> Renee: MORTGAGE, CREDIT CARD NONE DEFAULTS TO THE -- ADDING DAUGHTER TO DEED SO DAUGHTER AVOIDS TAXATION OF FLORIDA AND HOMES IN THE STATES GO TO A DIRECT RELATIVE?

>> THE OPERATION OF THE DEED, IF SOMEBODY IS ON FOR EXAMPLE, HUSBANDS AND WIVES ARE OFTEN ON A DEED JOINT WITH RIGHT OF SURVIVORSHIP.

IN KENTUCKY THAT IS A SURVIVORSHIP DEED.

ONE DIES THE OTHER OWNS IT IN THAT MOMENT 100% OF IT.

IN SOME STATES LIKE FLORIDA, YOU CAN HAVE TRANSFER ON DEATH DEEDS.

WE DO NOT HAVE THOSE IN KENTUCKY THAT HAS COME BEFORE OUR LEGISLATURE MULTIPLE TIMES BUT HAS NOT PASSED.

WHICH WOULD GIVE YOU THE RIGHT TO RETAIN OWNERSHIP AND DESIGNATE A BENEFICIARY OF YOUR REAL ESTATE.

WE DO NOT HAVE THAT IN KENTUCKY.

SOMETIMES PEOPLE WILL ADD A CHILD TO A DEED TO TRY TO AVOID PROBATE, AVOID COURT AFTER THEY PASS AWAY.

>> WHICH WE DON'T RECOMMEND.

>> BUT IT CAN CAUSE PROBLEMS AND WE TELL PEOPLE BEWARE BECAUSE ONE, IT COULD CAUSE A MEDICAID ELIGIBILITY ISSUE IF THEY NEED OTHER SERVICES.

AND THEY WON'T BE ABLE TO GET IT IF THE TRANSFER HAPPENED IN THE FIVE YEARS BEFORE.

>> BECAUSE MEDICAID CONSIDERS THEY MADE A GIFT.

>> OR YOUR KID GETS DIVORCED THEY GO THROUGH BANKRUPTCY.

>> NOW, YOUR IN-LAW OWNS YOUR HOME.

>> Renee: WE HAD A LOT OF QUESTIONS ABOUT THIS.

THERESA WARD ASKS ON AN EXPLANATION OF THE MEDICAID FIVE-YEAR LOOK BACK PER PERIOD WOULD BE HELPFUL WITH A LOT OF PEOPLE.

IT'S SOMETHING YOU HAVE TO BE AWARE OF.

FIVE-YEAR LOOK BACK IS THAT UBIQUITOUS FROM STATE TO STATE.

>> THAT IS A FEDERAL RULE 60 MONTHS.

IN THE 1990s YOU COULD GIVE YOUR ASSETS AWAY ON MONDAY, GO INTO MEDICAID ON TUESDAY, AND MEDICAID WOULD BE APPROVED AND THEY WOULD PAY FOR YOUR NURSING HOME.

IN 2006, THE END OF THE REFORMS HAPPENED.

AND WHAT THE GOVERNMENT SAID AT THAT POINT IS YOU CAN'T DO THAT.

WHAT WE WILL DO IS YOU CAN TRANSFER ASSETS YOU CAN PUT THEM IN A TRUST A TOOL WE OFTEN USE IT HAS TO BE IRREVOCABLE BUT AT LEAST FIVE YEARS PRIOR TO ASKING FOR MEDICAID.

SO THE GOVERNMENT LETS YOU DO THAT.

HOWEVER YOU ARE GIVING THEM A FIVE-YEAR PERIOD THAT WILL YOU NOT ASK FOR MEDICAID.

THE LOOK BACK I MAKE AN APPLICATION FOR MEDICAID.

MEDICAID WILL LOOK BACK TO MAKE SURE ANY TRANSFERS TO TRUSTS OR OTHERWISE OCCURRED MORE THAN FIVE YEARS BEFORE.

IF THEY DID, IT'S DISREGARDED.

IF IT DIDN'T, THEN MEDICAID WILL NOT COVER THAT PERSON FOR AN AMOUNT OF TIME THAT THEY BELIEVE IS EQUAL TO THE AMOUNT YOU COULD HAVE PAID FOR IF YOU HAD NOT TRANSFERRED THAT MONEY.

AND IT'S ALL A FORMULA.

>> Renee: AND THE FORMULA CHANGES EVERY YEAR.

>> IT CHANGES EVERY YEAR BASED ON THE ESTIMATED COST OF A NURSING HOME IN THAT PARTICULAR STATE PER MONTH.

OUR IS A DAILY RATE IN KENTUCKY.

SO EVERY STATE HAS THEIR OWN NUMBER IT'S CALLED A TRANSFER RESOURCE FACTOR THAT IS HOW THE FIVE-YEAR LOOK BACK WORKS.

WHICH IS WHY IF YOU GET IN AND PLAN EARLY ENOUGH YOU ARE NOT BUTTING UP AGAINST THAT FIVE YEAR RULE YOU DON'T HAVE THOSE CONCERNS.

THERE ARE EXCEPTIONS LIKE ALL GOOD GOVERNMENT RULES THERE ARE EXCEPTIONS TO IT FOR HOUSES WHERE CHILDREN CARE FOR THEIR PARENTS OR WHERE THERE'S DISABLED CHILDREN.

THERE ARE EXCEPTIONS AND ANY GOOD ELDER LAW ATTORNEY IS GOING TO KNOW HOW A PARTICULAR SITUATION FITS IN.

>> AND SOMETHING TO LOOK FOR WITH SENIORS OF LOW INCOME, IS THERE IS A PROGRAM CALLED THE SOMEDAY ACCOUNT AND IT WAS BROUGHT INTO FRUITION FROM THE OBAMA ADMINISTRATION WHERE SENIORS THAT ARE ON DISABILITY THAT CAN ONLY HAVE $2,000 WITHIN THEIR BANK ACCOUNT CAN PUT MONEY INTO THE SOME DAY ACCOUNT AND NOT HAVE THEIR BENEFITS AFFECTED.

>>SOME DAY.

>> GOOD INFORMATION.

AS A SINGLE PERSON WITH NO CHILDREN IN MY 60s IS A TRUST A GOOD OPTION FOR LEAVING ASSETS?

WHAT IS DIFFERENT ABOUT THAT VERSUS A WILL?

>> I'M HAPPY TO JUMP IN.

WILLS ARE VERY SIMPLE.

EVERYTHING THAT GOES THROUGH A WILL GOES THROUGH PROBATE.

>> Renee: AND PROBATE MEANS WHAT?

>> PROBATE ASSETS IT A LEGAL TERM WHEN YOU DIE YOU HAVE AN ESTATE THAT TAKES YOUR PLACE.

AND ASSETS OWNED BY THE ESTATE OR GO THROUGH PROBATE HAVE TO BE REPORTED TO THE COURT DEPENDING ON THE AMOUNTS IF THERE'S NO EXEMPTIONS IT HAS TO STAY OPEN FOR SIX MONTHS.

THERE IS AN OPPORTUNITY FOR ALL CREDITORS TO MAKE CLAIMS AGAINST WHATEVER YOU'RE LEFT OR TRY TO LEAVE TO YOUR FAMILY IT IS A HASSLE IT'S AVOIDABLE.

I LIKE TO SAY MY CLIENTS DONLTS' HAVE TO WORRY ABOUT PROBATE BECAUSE WE DO FORT D WE CAN TO AVOID IT.

BUT WE HAVE TO DO PROBATE SOMETIMES BECAUSE NOT EVERYBODY HAS THEIR STUFF IN A TRUST.

AND I CAN'T THINK OF A GOOD REASON NOT TO PUT IT IN A TRUST IF YOU HAVE SOMETHING IT'S MUCH EASIER ON YOUR FAMILY TO HAVE A TRUSTEE HAVE IMMEDIATE ACCESS TO THE FUNDS.

NOT HAVE TO GO TO COURT.

NOT HAVE TO FILE THE INVENTORY FOR THE WORLD TO KNOW EVERYTHING THAT YOU OWN.

THERE'S LAWYERS THAT WILL LOOK AT THAT STUFF AND JUST TO SEE IF THEY CAN COME AFTER YOUR -- NOT US.

>> SIMPLE IN THAT CIRCUMSTANCE WHERE THERE IS A SINGLE PERSON IN ORDER FOR THE TRUST TO OPERATE WELL, THERE WOULD HAVE TO BE AN ALTERNATE TRUSTEE AND IT'S IMPORTANT FOR THAT PERSON TO KNOW THAT PLACING ITEMS IN A REVOCABLE TRUST THAT SHE MANAGES DURING HER LIFE OR TOO DISABLED TO MANAGE IT DOES NOTHING TO PROTECT THOSE ASSETS AGAINST MEDICAID.

AND IF YOU HAVE YOUR ASSETS IN A TRUST, AND YOU DIE, THERE HAS TO BE A BACKUP TRUSTEE TO MAKE THE DISTRIBUTIONS.

SO JUST LIKE HAVING AN EXECUTOR.

IT IS A PLAN AND SOMETIMES I HAVE CLIENTS THAT DO A TRUST AND THEY THINK THEY HAVE A HOME RUN AND ARE AVOIDING PROBATE.

AND IN FACT THEY DON'T HAVE ALL THEIR ASSETS TITLED TO THE TRUST IT IS A COMPLICATED WAY TO OWN THINGS AND THEY HAVE BOTH THE TRUST AND A PROBATE.

AND THEY'VE MADE AN ADMINISTRATIVE MESS FOR THEMSELVES AND WHOEVER THEY ARE LEAVING THINGS TO.

IF THAT PERSON FOR EXAMPLE DECIDED TO LEAVE THINGS TO CHARITY, IN MY OPINION IT WOULD BE EASIER TO DO A WILL LEAVING HER BELONGINGS TO A CHARITY AND NAME SOMEBODY TO BE THE EXECUTOR AND THAT WOULD BE A VERY STRAIGHTFORWARD WAY TO TRANSITION ASSETS.

>> Renee: AS OPPOSED TO A TRUST.

>> A LOT OF ASSETS ANYMORE ARE TITLED WITH BENEFICIARIES AND OUR FINANCIAL PLANNERS CAN PUT TRANSFER ON DEBT DESIGNATIONS ON THOSE ACCOUNTS.

WE CAN DO PAYABLE ON DEATH DESIGNATIONS ON CHECKING AND SAVINGS ACCOUNTS IN KENTUCKY WHICH WE ENCOURAGE THAT.

THAT MEANS THEY HAVE TO PRESENT A DEATH CERTIFICATE AND THEY WILL GIVE THAT ACCOUNT OVER TO THE BENEFICIARIES THAT ARE NAMED.

I ALWAYS TELL CLIENTS WHEN SOMEONE DIES WE LOOK AT SEE WHAT IS IN THAT PERSON'S NAME THEIR NAME ALONE WITH NO JOINT OWNER THAT DOESN'T HAVE A BENEFICIARY AND ISN'T IN A TRUST.

WHATEVER IS LEFT IS WHAT MUST GO TO COURT AND THAT IS FROZEN UNTIL I TAKE THAT ORIGINAL WILL AND I HAND IT TO THAT COURT AND THEN THE JUDGE APPOINTS THE EXECUTOR.

PEOPLE THINK I APPOINTED AN EXECUTOR BECAUSE I'VE ALREADY APPOINTED THEM THEY ARE IN MY WILL.

YOU'VE NOMINATED THEM.

THE JUDGE MUST APPOINT THEM.

>> WE DO A THOROUGH JOB OF CATEGORIZING ALL OF THE ASSETS ON A BALANCE SHEET TO SHOW WHAT IS TAXABLE AND WHAT IS TAX DEFERRED AN IRA AND SHOW HOW MUCH IS OWNED INDIVIDUALLY BY IF WE'RE TALKING ABOUT A HUSBAND AND WIFE.

OR SPOUSES WE TALK ABOUT HOW MUCH IS OWNED BY ONE AND THE OTHER AND THEN HOW MUCH IS OWNED JOINT.

WE INTRODUCE THE CONCEPT OF TENANTS IN COMMON WHERE A PIECE OF PROPERTY CAN BE OWNED JOINTLY BUT EQUAL OWNERSHIP BETWEEN THE TWO SPOUSES WE SEE A LOT OF THAT HAPPENING.

WE SPLIT THAT IN THE FIRST TWO COLUMNS OF THE BALANCE SHEET.

>> AND THAT WORKS LIKE A TRUST WITH WHAT WE CARE RLT'S READVOCATABLE LIVING TRUST.

>> FOR ME I SEE PEOPLE WHO WILL FUND THE TRUST AND HAVE EVERYTHING SETUP AND THEN THERE WILL BE ONE CHECKING ACCOUNT WITH LIKE $1500 IN IT AND THE CARS.

THEY NEVER REMEMBER TO DO SOMETHING WITH THE CARS SO WE HAVE TO GO TO COURT AND OPEN A PROBATE FOR A $15 CAR OR A $500 CAR AND IT'S LIKE MY ATTORNEY'S FEES I'M TRYING TO TALK THEM THROUGH IT BECAUSE THERE'S LESS MONEY IN THE ACCOUNT THAN THE COST TO DO THE PROCESS.

>> Renee: GETTING TO THE THINGS ABOUT READVOCATABLE TRUST WE HAVE A COUPLE QUESTIONS.

WE WANT TO BE CLEAR.

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF A WILL OR REVOCABLE TRUST AND WHEN DOES THE ADVANTAGE JUSTIFY THE COST OF THE REVOCABLE TRUST?

>> A REVOCABLE TRUST ACCOMPLISHES ONE THING.

IT CAN ACCOMPLISH MORE THAN ONE.

BUT THE PRIMARY THING IT GETS EVERYTHING OUT OF PROBATE.

YOU ARE AVOIDING PROBATE AND MAKING THE ADMINISTRATION OF YOUR ESTATE EASIER ON YOUR CHILDREN WITH A READVOCATABLE LIVING TRUST.

YOU CAN STILL MAINTAIN CONTROL OF YOUR ASSETS AND CHANGE IT AT ANY TIME.

REVOCABLE BEING THE WORD.

BUT YOU GET ZERO ASSET PROTECTION FROM IT.

SO YOU ARE NOT PROTECTING YOUR ASSETS FROM CREDITORS YOU ARE NOT PROTECTING YOUR ASSETS FROM ANY POTENTIAL TAX ISSUES THAT MAY COME UP.

YOU ARE NOT PROTECTING YOUR ASSETS FROM THE NURSING HOME.

OR FROM YOURSELF FOR THAT MATTER IF YOU ARE YOUR OWN TRUSTEE.

WHAT WAS THE REST OF THE QUESTION?

WHAT IS THE ADVANTAGE OF A REVOCABLE TRUST?

>> I DO THINK ONE THING, TOO, REVOCABLE TRUSTS TO ME ARE A GREAT VALUE WHEN SOMEONE HAS REAL ESTATE IN MULTIPLE STATES.

I'M NOT SCARED OF PROBATE IN KENTUCKY AND I THINK PROBATE IN KENTUCKY IS ACTUALLY NOT HORRIBLE COMPARED TO OTHER STATES.

BUT IF YOU HAVE TO GO FOR PROBATE HERE AND THE CONDO IN FLORIDA AND THAT FARMLAND IN KANSAS THEN YOU'VE GOT A LOT OF LAWYERS INVOLVED AND YOU MAY NOT WANT THAT.

IT CAN GET EXPENSIVE.

THE OTHER THING IS MARRIAGES.

THE SECOND OR THIRD MARRIAGE AND HIS KIDS DON'T LIKE HER AND HER KIDS DON'T LIKE HIM IF THEY HAVE WILLS AND ONE DIES, THAT WILL GOES AWAY.

IF THAT WILL SAID I LEAVE EVERYTHING TO MY CHILDREN OR EVERYTHING TO MY WIFE BUT IF THEY DIE FIRST, THE ONLY WILL THAT MATTERS IS THE WIFE'S.

IF SHE LEAVES EVERYTHING TO HER CHILDREN HIS CHILDREN GET NOTHING AND THERE'S WAYS WE CAN USE READVOCATABLE TRUSTS TO HELP THAT SITUATION.

>> IF YOU WANT TO LEAVE IT WITH STIPULATIONS.

SOME PEOPLE WE JOKE ABOUT TRYING TO CONTROL OUR MONEY FROM THE GRAVE BUT SOMETIMES YOU NEED TO.

YOU MIGHT HAVE A DISABLED CHILD OR A CHILD WITH A DRUG OR CHALLENGE PROBLEM OR MAYBE YOU WANT TO MAKE SURE IT SKIPS A GENERATION AND GOES TO YOUR GRANDKIDS.

THERE'S LOTS OF GOOD USES FOR THE REVOCABLE TRUST.

>> Renee: WHAT RESOURCES ARE AVAILABLE IN CENTRAL KENTUCKY TO SUPPORT SENIORS THAT WANT TO AGE IN PLACE IN THEIR HOMES RATHER THAN A FACILITY?

>> ONE OF THE NEW THINGS TO KENTUCKY IN 2022, THE STATE ENACTED THE PACE LEGISLATION, PROGRAM FOR ALL INCLUSIVE CARE OF THE ELDERLY.

AND THERE'S SIX PACE PROVIDERS IN THE STATE AND THE STATE IS LOOKING TO HAVE PACE PROGRAMS THROUGHOUT THE STATE.

AND THIS PROGRAM IS INDIVIDUALS THAT ARE 55 AND OLDER.

MOST OF THEM ARE DUE ALI ELIGIBLE FOR MEDICARE AND MEDICAID.

AND THE INDIVIDUALS MEET THE LEVEL OF CARE THAT THE STATE HAS DETERMINED MAKES YOU ELIGIBLE TO LIVE LONG-TERM IN A NURSING HOME.

BUT WITH THE HELP AND SUPPORT OF THE PACE PROGRAM, PROVIDING MEDICAL CARE AND SERVICES, COORDINATING ALL YOUR CARE.

SOCIALIZATION, TRANSPORTATION, SAFETY MODIFICATIONS IN THE HOME WHETHER IT'S GRAB BARS, THINGS THAT THE PACE PROGRAM CAN DO IT IS A HEALTHCARE SERVICE THAT LETS PEOPLE AGE IN PLACE WITH THE SUPPORTS OF IN-HOME CARE AND COMPREHENSIVE PRIMARY CARE TO MANAGE THEIR HEALTHCARE NEEDS LIVE AT HOME.

>> Renee: GOOD.

>> ALMOST WITHOUT FAIL OUR CLIENTS TELL US THAT WHEN I ASK WHERE DO YOU WANT TO SPEND YOUR LAST YEARS IT'S AT HOME.

WANT TO PROVIDE CARE IN THE HOME.

WE CONCENTRATE ON FOUR DIFFERENT QUESTIONS IN OUR FINANCIAL PLANS TO INCLUDE WHERE DO YOU WANT TO AGE IN PLACE?

HOW DO YOU WANT YOUR HEALTHCARE PAID FOR?

THAT COULD BE ANYONE OF MEDICAID, INSURANCE, LONG-TERM CARE INSURANCE OR SELF PAY OR SOME COMBINATION OF ALL THE ABOVE.

AND USUALLY THAT'S THE ONE MOST PEOPLE END UP WITH IS A COMBINATION OF THOSE.

AND THEN WE ALSO WANT TO KNOW WHERE YOU WANT TO BE CARED FOR AS WELL AS -- I LIKE TO FOCUS QUESTIONS AROUND WHAT DO YOU WANT YOUR LEGACY TO BE?

ONE OF THE MOST DIFFICULT CONFLICTS THAT ELDERS FACE IS HOW TO HOLD ON TO AS MUCH CONTROL AS POSSIBLE WHILE LETTING GO OF MY LEGACY.

AND THE RESOLUTION OF THAT CONFLICT GETS INTO ALL KINDS OF CONVERSATIONS ABOUT WHAT I WANT MY LEGACY TO BE.

AND WE FOCUS A LOT OF TIME SPENDING TIME DOING THAT WITH OUR FINANCIAL PLANNING PRACTICE.

>> WE'RE REALLY EXCITED ELDER LAW ABOUT PACE AND THE ARRIVAL OF THAT PROGRAM IN KENTUCKY AS AND IT'S SPREADING MORE AROUND THE STATE.

I THINK IT'S IMPORTANT THAT OUR CLIENTS UNDERSTAND, TOO, THAT MAKING SURE THEY ARE GETTING THE PROPER SUPPORTS IS ACTUALLY THE GREATEST TOOL TO MAKING SURE THEY NEVER GO TO A NURSING HOME.

SO IF WHETHER IT'S HOMECARE, GETTING ENROLLED IN PACE TO BRINGING MAYBE THEY DO NEED ASSISTED LIVING OR NEED INDEPENDENT LIVING OR RETIREMENT LIVING HAVING THE RIGHT SUPPORTS IN PLACE AND NOT JUST IGNORING THE SITUATION, IS GOING TO GIVE THEM THE BEST CHANCE TO AGE WHERE THEY WANT TO.

IT'S THAT FALL BECAUSE WE ARE NOT GETTING THE CARE WE NEED.

IT'S THAT WE'RE NOT GETTING THE NUTRITION WE NEED.

WE ARE NOT GETTING THE SOCIALIZATION THAT WE NEED.

WE'VE GOT DEPRESSION AND OTHER THINGS THAT ARE GOING ON LONELINESS.

I MEAN ALL THOSE THINGS CONTRIBUTE TO OUR DECLINE IF WE ARE NOT CAREFUL.

SO WE'RE JUST EXCITED THAT WE'RE SEEING MORE AND MORE OF THESE GREAT DEVELOPMENTS IN THE COMMONWEALTH WE URGE OUR LEGISLATORS TO CONTINUE TO SUPPORT THE PROGRAMS THAT WILL HELP KENTUCKIANS STAY AT HOME LONGER AND SATISFY THAT GOAL.

EDUCATING THEM ABOUT THE OPTIONS THE FINANCIAL PLANNING GETTING THEM WHERE THEY NEED TO BE.

BECAUSE THAT IS EVERYBODY'S DESIRE.

>> Renee: WELL, WE'RE GOING TO GO BACK TO CASEY PARKER BELL IN THE ADJOINING STUDIO.

CASEY?

>> WE'LL GET RESPONSES FROM SOMEONE ANSWERING CALLS.

KAREN, THE QUESTION WE HAVE AS PEOPLE START TO PLAN FOR END OF LIFE HEALTHCARE FUTURE HEALTHCARE WHAT ARE THE CONCERNS YOU HEAR FROM YOUR KRINTS?

>> OUR CLIENTS ARE LEGAL AID CLIENTS.

LOW INCOME.

AND THE GREAT CONCERN IS WHETHER OR NOT THEY ARE GOING TO BE ABLE TO KEEP THEIR HOME.

OFTENTIMES THEIR LARGEST ASSET.

IT IS AN ASSET THAT IS SPECIAL TO THEM.

WHERE THEY'VE GROWN OLD AND RAISED THEIR CHILDREN.

AND THAT'S A CONCERN WHEN SOMEONE HAS TYPICALLY THE LOWEST INCOME OF THEIR LIFE AND THEY ARE USING SAVINGS TO LIVE ON.

>> WHAT TYPE OF ADVICE DO YOU HAVE PEOPLE WITH THESE TYPE OF CONCERNS?

>> GOOD IDEA TO PLAN AHEAD, ESPECIALLY IF THEY BELIEVE AT SOME POINT THEY MAY NEED THE SERVICES OF MEDICAID AND THERE IS A FIVE-YEAR LOOK BACK ON THOSE SERVICES IT'S GOOD TO CALL THE STATE HEALTHCARE ASSISTANCE PROGRAM AND PLAN AHEAD AT LEAST FIVE YEARS.

>> THAT IS THE ADVICE IS PLAN AHEAD.

THANKS FOR A COUPLE MINUTES.

BACK TO YOU.

>> Renee: AND THIS QUESTION FROM SCOTT WITH AARP OF KENTUCKY GOOD PARTNERS WITH US ON PROGRAMS LIKE THIS, HE ASKED FOR THE PANEL TO DISCUSS THE BASICS OF ADVANCED HEALTHCARE DIRECTIVES ARE THEY AVAILABLE ON-LINE FROM A RELIABLE SOURCE?

>> YES.

THERE IS A GREAT ONE AND MOST OF US IN THE CALL ROOM ALL BROUGHT THEM.

FIVE WISHES.

YOU CAN GET IT ON-LINE AT AGING WITH DIGNITY.ORG OR MANY ORGANIZATIONS HAVE THEM AND IT IS A TOOL THAT YOU CAN WALK THROUGH ABOUT THE PEOPLE YOU WANT TO MAKE YOUR HEALTHCARE DECISIONS FOR YOU.

AND IT ENCOURAGES YOU TO DESIGNATE AN INDIVIDUAL AND TWO ALTERNATES.

WHAT KIND OF MEDICAL TREATMENT YOU WANT.

WHAT KIND OF COMFORT YOU WANT.

HOW YOU WANT TO BE TREATED.

THE PEOPLE THAT YOU WANT TO BE AROUND.

HOW YOU WANT COMMUNICATION TO OCCUR.

IT JUST WALKS YOU THROUGH SOME VERY SIMPLE QUESTIONS TO BEGIN TO HAVE DISCUSSIONS WITH YOUR LOVED ONES.

AND THAT'S WHAT WE CAN'T ENCOURAGE PEOPLE ENOUGH TALK TO YOUR FAMILY.

WHOEVER YOU CALL FAMILY.

EARLY ON BEFORE YOU ARE ILL. AND THEN AS YOU ARE ILL AND IT CHANGES, CONTINUE THOSE DISCUSSIONS.

IN KENTUCKY WITHIN THE LAST 10 YEARS, ALSO ENACTED MOST CALLED MEDICAL ORDERS FOR SCOPE PA TREATMENT.

AND OF US WRITE OUR LIVING WILLS THE MAJOR EVENTS WHEN YOU GET MARRIED WHEN YOU HAVE CHILDREN.

WHEN YOU RETIRE.

NOT WHEN YOU ARE ILL.

THE MOST FORM LETS YOU IF YOU HAD A HEALTHCARE EVENT TALK TO YOUR PHYSICIAN.

I NEVER THOUGHT I WOULD HAVE A HEART ATTACK NOW I'VE HAD A HEART ATTACK.

I DIDN'T THINK ABOUT THAT WHEN I DID MY ADVANCED DIRECTIVES.

AND THE DOCTOR CAN WALK WITH YOU THIS IS WHAT YOU MIGHT SKPEP AND WHAT TYPES OF TREATMENT YOU CAN CHOOSE TO HAVE OR NOT HAVE AND THESE ARE MEDICAL ORDERS THAT HOSPITAL HAS TO FOLLOW, EMS HAS TO FOLLOW AND THE FORMS THEY CAN BE CHANGED IF YOUR HEALTH CHANGES.

BUT IT IS A WONDERFUL FORM.

YOU KEEP IT AT HOME.

YOU KEEP IT CLOSE BY YOU.

SO THAT IF YOU CALL EMS THEY KNOW WHAT YOU WANT AND YOU'VE HAD THE DISCUSSIONS WITH YOUR PHYSICIAN AND YOUR FAMILY KNOWS ABOUT IT OR WHOEVER YOU CALL FAMILY.

IT'S JUST A GREAT TOOL THAT THEN AS YOUR HEALTHCARE CHANGES YOU CAN CHANGE YOUR PHYSICIAN ORDERS.

>> THERE IS A SPECIFIC PROGRAM CALLED SMART 911.

ESPECIALLY HERE IN LEXINGTON, KENTUCKY.

WHERE YOU CAN ACTUALLY HAVE SOME OF THESE FORMS UPLOADED INTO THE COMPUTER SO WHEN YOU CALL 911, IT AUTOMATICALLY POPS UP ON THE DISPATCHER'S SCREEN.

SO EMS WILL KNOW WHAT TO DO ONCE THEY GET THERE.

>> Renee: THAT'S INTERESTING.

>> AND IT'S FREE.

>> IS IT JUST IN LEXINGTON?

>> IT STARTED HERE AND STARTING TO SPREAD THROUGHOUT COUNTIES.

WE ARE ONE OF THE FEW PLACES THAT HAVE A PARAMEDICINE TEAM WHICH IS A DESIGNATION OF FIVE PEOPLE YOU HAVE TWO SOCIAL WORKERS ONE PARAMEDIC AND YOU HAVE A POLICE OFFICER AS WELL AS A FIREFIGHTER.

SO FOR WHEN 911 MIGHT NOT BE THE PLACE TO CALL FOR YOUR PROBLEMS, THE PARAMEDICINE TEAM CAN COME IN AND ANSWER THESE QUESTIONS.

I ALWAYS SUGGEST THAT WHATEVER FORMS YOU HAVE TRY TO IMAGE ADVERTISE IT TO THE FRIDGE OR SHE SUGGESTED PUTTING IT IN YOUR ICE CUBE TRAY.

>> IF YOU WANT THIS ON YOUR REFRIGERATOR WHEN EVERYONE WALKS IN YOUR HOUSE.

FOLD IT AND PUT IT IN A BAGGY.

ANYONE IN YOUR HOUSEHOLD CAN FIND IT QUICKLY.

RATHER THAN IT'S BURIED IN A DESK IN A FILE FOLDER IN YOUR PURSE.

>> THE MAJORITY OF EMS KNOW TO CHECK THE FRIDGE.

>> YES.

>> DON'T KEEP YOUR JEWELS IN THERE THE THIEVES MAY KNOW THAT.

KEEP YOUR DOCUMENTS THERE.

>> THE DOCUMENTS BREAK INTO LEGAL DOCUMENTS AND MEDICAL DOCUMENTS A HEALTHCARE SURROGATE WE TALKED ABOUT THAT EARLIER IS A LEGAL DOCUMENT THAT SAYS WHO CAN MAKE A MEDICAL DECISION FOR YOU IF YOU CANNOT.

A LIVING WILL IS END OF LIFE DECISIONS IF I AM AT THE END OF MY LIFE AND DON'T WANT TO BE KEPT ALIVE ON LIFE SUPPORT DO I WANT TO DONATE.

>> THE LIVING WILLS?

>> DO I?

I GIVE THEM THE PROS AND CONS, GENERALLY.

>> Renee: WHAT ARE THE CONS OF A LIVING WILL?

>> THEY ARE ROUTINELY IGNORED A LOT OF TIMES IT'S NOT LIKE THE DOCUMENT SHE SHOWED YOU.

>> THIS IS NOT A LEGAL DOCUMENT THESE ARE MEDICAL.

>> BUT A LIVING WILL IS MAKING A DECISION TODAY WHEN YOU DON'T KNOW THE FACTS FOR TOMORROW.

SIGN A DISUMENT THAT SAID UNDER NO CIRCUMSTANCES DO I WANT TO BE ON A VENTILATOR.

BECAUSE THAT'S CAUSING ME TO THEN COVID COMES ALONG.

>> I DISAGREE WITH THAT.

>> I PREPARE FOR MY CLIENTS HEALTHCARE AND PERSONAL DECISION MAKING POWERS OF ATTORNEY AS WELL AS THE FINANCIAL LEGAL ONE.

AND THAT PERSON IS A SURROGATE IN TERMS OF BEING ABLE TO MAKE DECISIONS IF YOU KNTS'.

BUT FOR THE HEALTHCARE POWER OF ATTORNEY, THEY ALSO JUST HAVE ACCESS.

THEY CAN GET ALL YOUR MEDICAL RECORDS AND HELP YOU MAKE DECISIONS.

>> HEALTHCARE POWER OF ATTORNEY IS WHAT I RECOMMEND.

>> I ALSO PROVIDE FOR MY CLIENTS FREE OF ADDITIONAL CHARGE A LIVING WILL DIRECTIVE.

AND I WILL GO THROUGH IT WITH THEM AND IF THEY CHOOSE TO SIGN IT'S FINE.

AND I SAY, HEY YOUR ESTATE PLAN SOMETHING COMPLETE IF YOU DON'T SIGN THIS DOCUMENT.

YOU HAVE A HEALTHCARE POWER OF ATTORNEY.

AND THAT MAYBE ENOUGH FOR YOU.

BUT I HAVE A LOT OF CLIENTS THAT ARE LIKE I'VE GOT SUCH-AND-SUCH DISEASE OR IT RUNS IN MY FAMILY AND I'VE SEEN PEOPLE BEING HAVE THEIR RIBS HIT HARD TO TRY TO MAKE THEM BREATHE AGAIN AND THEY ARE TAKING THEIR LAST BREATHS LITERALLY.

AND THEY WANT A SIGNAL THAT IS NOT THE CURE THEY WANT.

I THINK THAT'S FINE.

I DO -- I RECOMMEND THAT IF THEY HAVE STRONGER.

>> Renee: AND YOU CAN BE SPECIFIC ABOUT THE SITUATIONS IN WHICH.

>> SO A LIVING WILL IN KENTUCKY IT REQUIRES A CIRCUMSTANCE WHERE YOU ARE NONDECISIONAL YOU CANNOT TELL ANYBODY WHAT YOU WANT.

YOU MUST BE IN A TERMINAL CONDITION DEATH IS IMMINENT WHATEVER TREATMENT IS PROLONGING THE DYING PROCESS.

OR YOU CAN BE PERMANENTLY UNCONSCIOUS A VEGETATIVE STATE LIKE A COMA.

ONLY IN THAT SITUATION ARE YOUR LIVING WILL DECISIONS LOOKED AT.

SO THE HEALTHCARE SURROGATE THEIR ROLE IN MY OPINION IS TO MAKE SURE THAT THAT HAS BEEN SATISFIED.

BUT THE GREATEST ADVANTAGE OF LIVING WILL IS TAKE THE BURDEN OFF A ADULT CHILD FOR HAVING TO MAKE A VERY DIFFICULT DECISION.

>> ANY LAY PERSON CAN DO A LIVING WILL.

IT DOESN'T HAVE TO GO THROUGH AN ELDERCARE LAW ATTORNEY.

>> NO OFFENSE BUT THEY CAN CUT YOU GUYS OUT.

>> IT'S HELPFUL TO HAVE AN ATTORNEY EXPLAIN TO YOU THE PROS AND CONS.

I CAN'T TELL YOU HOW MANY TIMES I'VE SEEN ONE FILLED OUT AND YOU HAVE A LIVING WILL I'M LOOKING AT YOUR DOCUMENT AND IT SAYS THIS AND THEY SAY THAT IS NOT WHAT I WANTED.

>> Renee: THEY DIDN'T UNDERSTAND IT.

>> I TURN TO MY CLIENTS AND TELL ME WHAT CARE YOU WANT AT THE END OF LIFE.

YOU WANT A VENTILATOR OR IF THE MEDICAL PEOPLE IN THEIR JUDGMENT THINK THAT YOU ARE NOT GOING TO RESPOND, AND NOT GOING TO BE COMING BACK TO WHERE YOU WERE BEFORE THAT INCIDENT, DO YOU WANT TO DIE NATURALLY?

IF THEY SAY YES OR NO THEN YOU TELL THEM WHICH BOX TO PICK.

>> Renee: IT DEPENDS ON YOUR AGE IF YOU ARE 35 YOU SAY JUMP AND AND UP UNTIL YOU BRING ME BACK AS OPPOSED TO 95.

WOULD YOU NEED TO UPDATE YOUR LIVING WILL AS YOU AGE?

>> YES.

A LIVING WILL CAN BE UPDATED.

AND PEOPLE SHOULD KNOW IF THEY DID THIS FORM LAST YEAR, AND THEIR HEALTHCARE SITUATION HAS CHANGED, THEY WRITE REVOKED IN BIG LETTERS DESTROY ALL COPIES AND DO A NEW ONE.

MAKE SURE YOUR ATTORNEY HAS IT.

MAKE SURE YOUR LOVED ONE HAS YOUR MOST CURRENT COPY AVAILABLE AND ONE HAS BEEN REVOKED THE CURRENT ONE WOULD BE HONORED.

IT'S IMPORTANT HEALTHCARE CHANGES.

MEDICAL TECHNOLOGY CHANGES.

AND CHANGES WHAT YOUR OUTCOMES MIGHT BE FROM WHAT YOU'VE.

>> I TELL PEOPLE TO THINK OF THE LIVING WILL AND THE DNR THEY ARE TWO DIFFERENT DOCUMENTS.

LIVING WILL IS I AM ALIVE THIS IS HOW I WANT TO DIE IN A SET OF CIRCUMSTANCES.

A DNR I'M DEAD DO I WANT THEM TO TRY TO BRING ME BACK TO LIFE.

PEOPLE REMEMBER THE FOOTBALL PLAYER FOR THE BUFFALO BILLS WHO WENT INTO CARDIAC ARREST AND HE IS PLAYING FOOTBALL.

BECAUSE YOU ARE YOUNG AND HEALTHY, THEY CAN RESTART YOUR HEART AND YOU CAN RETURN TO HIGH QUALITY OF LIFE.

BUT YOU MAY GET TO A POINT DUE TO ILLNESS, DUE TO AGE, YOU KNOW, LIKE WE TALK ABOUT, THAT PROCESS OF RESUSCITATION IS A VIOLENT PROCESS.

THEY MAY SAY I DON'T WANT THAT TO HAPPEN WHEN THEY ADD A DNR.

SO LIKE A CLIENT OF MINE WHO IS 85 AND I'M 48, WE MIGHT HAVE THE EXACT SAME LIVING WILL BUT THEY MIGHT CHOOSE A DNR WHERE I WOULD NOT.

IT'S ABOUT WHERE YOU ARE IN LIFE.

>> WELL, AND THE LIVING WILL ISN'T ABOUT HOW YOU WANT TO DIE.

IT'S IF I CAN'T MAKE DECISIONS FOR MYSELF, I MIGHT BE EXPECTED TO LIVE, BUT WHO DO I WANT TO MAKE THOSE DECISIONS AND WHAT DECISIONS WOULD I WANT FOR MYSELF WHEN I CAN'T SPEAK FOR MYSELF.

>> YOU DO ONE OR ANOTHER YOU DON'T MAKE THE FINAL DECISIONS FIRST OR YOU DESIGNATE A HEALTHCARE SURROGATE YOU DON'T DO BOTH.

>> SO WE DO BOTH.

>> WE HAVE A SURROGATE BECAUSE SOMEBODY MAY HAVE CHRONIC DECISION MAKING THAT NEEDS TO BE DONE BECAUSE THEY HAVE ALZHEIMER'S SO THEY NEED NONEND OF LIFE DECISION MAKING DONE THEY CAN MAKE THE LIVING WILL DECISIONS AS WELL.

BUT THEY WOULD NAME THAT SURROGATE IF I AM IN SURGERY, THAT'S NOT THE END OF MY LIFE BUT IF SOMETHING COMES UP I NEED MY HUSBAND TO MAKE A DECISION FOR ME.

THAT WOULD BE MY HEALTHCARE SURROGATE BUT I MIGHT REMAIN THAT CAPACITY THAT I MIGHT NOT NEED HIM ANYMORE.

HEALTHCARE SURROGATES YOU KNOW, TO ME ARE MUCH MORE ABOUT GENERAL DECISION MAKING AND LIVING WILL IS VERY LIMITED.

IT'S ONLY END OF LIFE.

>> WHEN THE MEDICAL PEOPLE THINK YOU ARE AT THE END OF YOUR LIFE.

>> Renee: GOOD CLARIFICATION THAT IS WHAT THIS PROGRAM IS ABOUT.

>> WE ARE A HINTING AROUND ONE OF THE BIGGER MISTAKES WE SEE I SEE MISTAKES FROM CLIENTS WHEN THEY COME IN.

ONE OF THOSE IS THAT THE DOCUMENTS ARE WAY OUT OF DATE.

OR THEY APPOINT SOMEBODY THAT IS NO LONGER IN THE PICTURE OR WHATEVER.

>> AND CLIENTS TEND TO NOT RECOGNIZE THE DIFFICULTIES THAT THAT CIRCUMSTANCE WILL BRING TO THEM.

>> Renee: WHAT IS WAY OUT OF DATE?

>> DEPENDS HOW OLD YOU ARE.

THE YOUNGER YOU ARE THE FARTHER YOU CAN STRETCH YOURSELF.

A LOT OF TIMES IT'S BASED ON LIFE CHANGE EVENTS A NEW CHILD, GOT MARRIED SOMEONE PASSED AWAY.

WHATEVER THE OLDER YOU GET THE MORE OFTEN THEY NEED TO BE REVIEWED.

>> LIFE CHANGES.

>> Renee: THAT IS ONE TAKEAWAY FOR TONIGHT.

THIS SCENARIO PRESENTED TO US FROM A VIEWER.

I'M CONSIDERING LENDING MY DAUGHTER AND HER HUSBAND FUNDS TO PURCHASE A HOME.

THE LOAN WILL BE SIZABLE SINCE SHE LIVES IN CALIFORNIA RATHER THAN HER PAYING ME OR USING A LIFETIME EXCLUSION I'M THINKING OF USING THE ANNUAL GIFT FROM MY WIFE AND I FOR LOAN REPAYMENT MY QUESTION IS TAX CONSEQUENCES WILL I NEED TO DECLARE INCOME?

AND SHE CAN DEDUCT?

THOUGHTS TO AVOID BOTH.

>> YEP.

IT'S GOING TO BE TAXABLE INCOME.

AND THE GIFT GOING IN THE OTHER DIRECTION WON'T BE.

WON'T BE INCOME TO HER.

>> WHEN YOU GIVE A GIFT, IT IS NOT INCOME TO THE RECIPIENT.

SO WHEN YOU GIVE A GIFT A LOT OF PEOPLE ARE CONFUSED ABOUT THIS ANNUAL EXCLUSION.

IT'S A LAW THAT IS THERE TO KEEP PEOPLE FROM GIVING AWAY ALL THEIR MONEY BEFORE THEY DIE AND SAYING I DON'T HAVE MONEY FOR THE PURPOSES OF THE FEDERAL ESTATE TAX.

SO THE GOVERNMENT GOES BACK AND ADDS BACK IN GIFTS THAT YOU MADE OVER A CERTAIN LEVEL DURING YOUR LIFETIME TO SEE IF YOU OWE TAX RIGHT NOW YOU WOULD HAVE TO HAVE $27 MILLION TO OWE FEDERAL TAX THAT DOESN'T AFFECT.

>> Renee: IS THAT A REAL NUMBER?

>> THAT IS A REAL NUMBER.

>> 27 MILLION FOR AN INDIVIDUAL AND DOUBLE THAT FOR -- 13.

>> SCHEDULED TO CHANGE IN 2026.

>> IT'S SCHEDULED TO SUNSET BACK DOWN TO 12 MILLION.

BUT SO PEOPLE GET CONFUSED ABOUT THAT.

SO THEY THINK OH, I CAN'T GIVE MORE THAN 18.

I CAN'T GIVE MORE THAN 18 OR I WILL HAVE TO PAY TAXES.

NO YOU HAVE TO REPORT IT ON WHAT IS CALLED A GIFT TAX RETURN.

>> BUT THERE'S TAX LIABILITY ASSOCIATED THE I.R.S.

IS KEEPING TABS.

>> TO THE 11 OR 13 MILLION.

>> TAX THE IMPUTED INTEREST ON THE LOAN.

>> WHAT HE'S PROPOSING TO ME, IS MORE OF A IT IS A LOAN AND WHEN YOU HAVE A LOAN IF YOU DON'T CHARGE SOMEBODY THE APPROPRIATE INTEREST RATE THEN THE GOVERNMENT IMPUTES INTEREST SO EVEN THOUGH YOU DIDN'T CHARGE IT YOU ARE GOING TO BE TAXED AS IF YOU HAD CHARGED IT.

>> Renee: SOMETHING TO KEEP IT MIND.

>> YOU CAN'T CALL IT A GIFT, WINK A LOAN WHEN IT IS A GIFT.

AND YOU GOT TO BE CAREFUL WITH THOSE.

>> TRYING TO ACCOMPLISH WITH ALL THIS TO BEGIN WITH.

>> I THINK THEY WERE TRYING TO LOAN MONEY WITHOUT THEN BEING AN INCOME TAX.

>> FOR THE RETURN.

THE FIRST QUESTION WE WOULD ASK IS WHY ARE YOU DOING THIS?

>> I'M CONCERNED ABOUT THE OTHER REPERCUSSIONS FROM DOING THIS.

THERE'S OTHER ISSUES THAT COULD BE THERE.

HOW IS THAT GOING TO AFFECT OTHER HEIRS AND WHAT MONEY ARE YOU GOING TO USE TO DO THAT ALL OF THOSE CONCERNS IT WOULD BE A GREAT THING TO DISCUSS WITH A LAWYER.

>> SEEN TOO MANY LOANS BETWEEN FAMILY MEMBERS THAT NEVER GET REPAID.

>> RIGHT.

>> Renee: THIS FROM A VIEWER I'VE BEEN DESIGNATED POWER OF ATTORNEY FOR BOTH FAHRENHEITS AND ONE PASSED WAY.

CAN I EXPECT TO CONTINUE TO OPERATE FOR THE PARENT THAT PASSED AWAY BY VIRTUE OF CONTINUING TO BE POA FOR THE LIVING PARENT?

>> ANY AUTHORITY THEY HAD TO TACK ON BEHALF OF THE PARENT THAT DECEASED ENDED.

POWER OF ATTORNEY DIES WITH MY POWER OF ATTORNEY THAT I'VE NAMED AMY IS MY POWER OF DIE AND AIM CANNOT DO ANYTHING.

>> IT'S BY OPERATION OF LAW.

>> Renee: GOOD QUESTION.

SCROLL DOWN WE ARE GETTING GOOD QUESTIONS.

WE ARE ALMOST OUT OF TOWN I CAN'T BELIEVE IT.

AND WE KNOW WE CAN'T GET TO THEM ALL AND WE THANK YOU FOR WATCHING OUR CALL IN.

AND THE PROGRAM WILL BE ON-LINE TOMORROW IF YOU WERE TRYING TO TAKE NOTES YOU CAN DO THAT TOMORROW.

QUESTION.

SINGLE MAN LIVES IN A HOUSE THAT HE WANTS TO GIFT TO A FRIEND.

THESE PEOPLE ARE GENEROUS, BY THE WAY.

HOW DOES HE GO ABOUT LEAVING A ASSET TO A FRIEND BUT THIS IS A GIFT?

>> HE WANTS TO GIFT IT IN HIS LIFETIME.

>> Renee: I DON'T KNOW.

>> LEAVING IT IN THE WILL BRINGS UP TWO FRONDS WE HAVE AN INHERITANCE TAX YOU CAN LEAVE THINGS TO YOUR SPOUSE, CHILDREN, GRANDS CHILDREN, BROTHER, MOTHER, FATHER, BUT A FRIEND IS TAXED AT THE HIGHEST LEVEL THAT BEQUEST THROUGH A WILL OR A TRUST TO A FRIEND WOULD RESULT IN THAT TAXATION AND THERE'S NOT A LOT YOU CAN DO TO AVOID IT.

>> THE GIFT WOULD NOT GET TAXED ON IT.

>> PLANNING AHEAD.

AND IT WOULD BE A REPORTABLE GIFT LIKE WE TALKED ABOUT A GIFT TAX RETURN BUT UNLESS HE IS IN THAT 13 MILLION REALM HE MAY NOT.

>> MAYBE HE CAN GET A STEP UP.

>> AND THERE'S TAX IMPLICATIONS FOR THE RECIPIENT AS TO WHAT BASIS THAT PROPERTY HAD WHEN HE RECEIVED IT AND THINGS LIKE THAT THEY RECEIVE IT VIA GIFT.

>> Renee: THIS IS A GOOD QUESTION.

WE WILL DO A LIGHTNING ROUND.

WHAT HAPPENS TO PROPERTY WHEN A SPOUSE DIES WITHOUT A WILL AND NO CHILDREN?

>> DEPENDS HOW IT'S TITLED.

>> USUALLY IT'S JOINTLY WITH RIGHT OF SURVIVORSHIP THE SURVIVING SPOUSE WOULD OWN IN.

>> WHEN A SPOUSE DIES WITHOUT A WILL AND NO CHILDREN.

>> SO THEN YOU ARE IN TESTATE IT FINDS YOUR NEAREST LIVING RELATIVES.

IF YOU HAVE NO SPOUSE, NO CHILDREN NO GRANDCHILDREN IT GOES TO MOTHER AND FATHER.

IF NOT, IT'S GOING TO SISTER, BROTHER.

>> SISTER BROTHER AND THEIR CHILDREN.

THAT'S HOW IT GOES ON.

>> THERE IS NO ONE [INAUDIBLE].

>> Renee: CAN NURSING HOMES TAKE YOUR ASSETS AND YOUR RETIREMENT ACCOUNT?

>> IN THE STATE OF KENTUCKY 401K'S, IRA'S ARE EXEMPT FROM A MEDICAID SPEND DOWN.

>> THE QUESTION IS DO NURSING HOMES TAKE THEM NURSING HOMES DEFINITELY TAKE YOUR REQUIRED DISTRIBUTION AS PART OF THE AMOUNT YOU WOULD PAY EVERY MONTH.

YOU PAY YOUR OWN INCOME TO A NURSING HOME AND MEDICAID IF YOU ARE ELIGIBLE MAKES UP THE DIFFERENCE BETWEEN YOUR INCOME AND THE NURSING HOME BILL.

AND SO DISTRIBUTION IS PART OF THAT.

>> INCOME VERSUS THE ASSET WHEN IT COMES TO THE REQUIREMENT ACCOUNTS ARE TREATED DIFFERENTLY.

>> THEY DO HAVE TO BE DISTRIBUTION PHASED.

DISTRIBUTED A LEAST A DOLLAR.

>> OKAY.

>> Renee: THIS IS A TOUGH QUESTION BUT LONG-TERM CARE INSURANCE PLEASE GO OVER THIS TRADITIONAL AND HOME PROS AND CONS OF EACH?

>> I LOVE IT IT'S GREAT IF YOU CAN GET IT AND IF YOU GOT IT BACK IN THE 90s IT'S PROBABLY REALLY GOOD.

>> Renee: HOW MUCH DOES IT COST ON AVERAGE?

DEPENDS ON AGE AND HEALTH YOU GO THROUGH UNDERWRITING.

>> IF YOU ARE OVER THE AGE OF 75 YOU CAN FORGET ABOUT IT.

NOW MY PLANS BRING ME ARE LIFE INSURANCE THAT HAVE A ACCELERATED BENEFIT RIDER ON THEM AND THEY USE IT PART OF THE INVESTMENT PORTFOLIO.

>> Renee: OKAY.

GOOD QUESTIONS.

>> WE LOVE IT AND OF COURSE, IF THEY ARE OF THE AGE AND HEALTH TO GET IT WE ENCOURAGE THEM TO SHOP THAT IN THE PRIVATE MARKET.

>> BUT THE INCOME THAT YOU GET FROM THAT POLICY AND YOUR INCOME IS NOT ENOUGH TO PAY FOR THE NURSING HOME YOU MIGHT BE APPLYING FOR MEDICAID.

I LIKE TO TELL MY CLIENTS IF THEY WANT LONG-TERM CARE INSURANCE THEY NEED TO HAVE A REASON FOR IT.

THERE'S GOT TO BE SOMETHING IN THEIR LIFE THAT THEY ARE PROTECTING OR WANTING TO DO WITH IT.

>> ONE OF OUR MORE POPULAR RECOMMENDATIONS WE'VE MADE A LONGTIME AGO AND STILL, SEE THIS SITUATION CREATE THE MEDICATED QUALIFYING TRUST THE MOMENT THAT YOU NEED CARE TO PLACE EVERYTHING INTO THE MEDICAID QUALIFYING TRUST AND THEN USE THE LONG-TERM CARE INSURANCE TO PAY FOR THE LOOK BACK.

>> THE FIVE YEARS.

>> Renee: REAL QUICKLY.

ARE POA AND WILL DOCUMENTS LEGAL IN ALL 50 STATES DO THEY TRANSFER SEAMLESSLY IF A PERSON MOVES OUT OF STATE?

>> KENTUCKY RARELY ACCEPTS OTHER PEOPLE OTHER STATES.

BUT THEY GOT TO BE PROPERLY EXECUTED IN THE STATE WHERE THEY WERE EXECUTED.

>> Renee: ALL RIGHT.

IF YOU GIFT YOUR CHILDREN MONEY, WILL THEY COUNT IT AS STILL YOUR PROPERTY?

>> THEY ARE PROBABLY ASKING ABOUT THE FIVE-YEAR LOOK BACK.

>> Renee: WE STILL HAVE A LOT OF QUESTIONS ABOUT THE FIVE-YEAR LOOK BACK WE HAVE TO DO A SEPARATE PROGRAM ABOUT THAT.

BUT THAT'S REALLY GOOD.

OKAY.

A FEW EASY STEPS TO SETUP A TRUST CAN YOU DO THAT IN 30 SECONDS?

>> WELL, MEET WITH A LAWYER.

LOOK AT THE PROS AND CONS.

WITH AN IRREVOCABLE TRUST YOU HAVE TO GIVE UP OWNER AND CONTROL.

LIKE A BUCKET YOU CAN'T GET IN THE BUCKET ANYMORE.

SO YOU GOT TO HAVE TRUSTEES THAT YOU REALLY TRUST IN THOSE POSITIONS.

SO YOUR FIRST STEP IS TALK TO A LAWYER AND SEE IS THAT AN OPTION DOES IT MAKE SENSE.

REVOCABLE TRUSTS AVOID PROBATE AND ANY ELDER LAW ATTORNEY WILL WALK YOU THROUGH THE BENEFITS OF THAT.

>> Renee: HIS HAS BEEN GOOD I DARE NOT ASK ANOTHER QUESTION THESE ARE COMPLICATED ISSUES I'VE LEANED IN TONIGHT.

I'VE LEARNED A COUPLE THINGS LIKE GOSH, I WANT YOU TO HOLD THAT UP ONE MORE TIME THIS IS THE FIVE WISHES AND THE ADDRESS?

>> WWW.AGINGWITHDIGNITY.ORG.

>> Renee: IF YOU GO TO KET.ORG TOMORROW WE WILL HAVE A LIST OF RESOURCES AVAILABLE FOR YOU WITH THINGS FROM D SCOTT NEAL AND RESOURCES TO HELP YOU NAVIGATE ALL OF THIS BECAUSE WE COULD ONLY SCRATCH THE SURFACE TONIGHT.

WE THANK YOU FOR WATCHING OUR CALL IN PROGRAM THE KET FORUM.

THE AGING ISSUES ARE SO IMPORTANT TO US WE WILL HAVE ANOTHER FORUM ABOUT MEDICARE ENROLLMENT ON OCTOBER 7.

I'M RENEE SHAW THANK YOU FOR WATCHING UNTIL I SEE YOU AGAIN TAKE R