Can I Claim Grandfather’s Unclaimed Insurance Policy?

What if you recently discovered some old life insurance accounts being held by the state for your grandfather, who passed away in 1977.

It looks like the funds were never disbursed because the address was spelled wrong. As a result, the insurance accounts were considered unclaimed.

None of his children—including your mom—is alive today, and there are a number of adult grandchildren besides you.

How do you get your hands on this money? How is it disbursed?

Nj.com’s recent article entitled “I found two old life insurance policies. How can we collect?” says that insurance claims can be made at any time, even years after the death of the policy holder.

The first step is to make contact with the life insurance company that issued the policy.

The National Association of Insurance Commissioners has a website to help people locate insurance policies.

Even if the policy proceeds reverted to the state, you can still claim it through the Unclaimed Property Administration.

The National Association of Unclaimed Property Administrators, which is a network of the National Association of State Treasurers, says that about one in 10 people have unclaimed cash or property waiting for them.

Unclaimed or “abandoned” property is defined as property or accounts within financial institutions or companies with no activity generated (or contact with the owner) as to the property for one year or a longer period.

After a designated period of time—known as “the dormancy period”— with no activity or contact, the property becomes “unclaimed” and—by law—must be turned over to the state.

There are billions of dollars in unclaimed property that’s held by state governments and treasuries across the country.

As far as who would get your grandfather’s insurance policy proceeds, the distribution of the life insurance proceeds are governed by the contract of the life insurance policy.

Reference: nj.com (Nov. 18, 2021) “I found two old life insurance policies. How can we collect?”

What’s the Price Increase on Medicare Next Year?

Money Talks News’ recent article entitled “Traditional Medicare Premiums Will Soar in 2022” says that the rising costs include the:

2022 Medicare Part B standard premium: $170.10 per month, an increase of $21.60 from $148.50 in 2021. That’s compared with an increase of $3.90 per month one year earlier.
2022 Medicare Part B deductible: $233 per year, an increase of $30 from $203 in 2021. That’s compared with an increase of $5 one year prior.
2022 Medicare Part A inpatient hospital deductible: $1,556, an increase of $72 from $1,484 in 2021. That’s compared with an increase of $76 one year prior.

What this means is that Medicare costs will go up 2022 and will effectively reduce the 5.9% cost-of-living adjustment (or “COLA”) that increases retirees’ monthly Social Security benefit payments in the new year. For the average retiree, the 2022 COLA is about an extra $92 a month. These Social Security COLAs averaged 2.2% between 2000 and 2020 and annual increases in the Part B premium averaged 5.9% during the same period.

Here what Medicare Part A covers:

Inpatient hospital services
Skilled nursing facility services; and
Some home health care services.

Nearly all (roughly 99%) of Medicare beneficiaries don’t pay a premium for their Part A coverage due to how long they worked and had Medicare taxes withheld from their paychecks. Medicare Part B covers the following types of care:

Physician services
Outpatient hospital services
Certain home health services
Durable medical equipment; and
Certain other medical and health services not covered by Part A.

Part B premiums are based on income. Those with higher incomes pay higher Part B premiums — which will be anywhere from $238.10 to $578.30 for 2022, depending on income and federal tax-filing status.

Reference: Money Talks News (Nov. 15, 2021) “Traditional Medicare Premiums Will Soar in 2022”

What are Earnings Limits for Disability Retirees?

If you are 60 or older, there’s no restriction on the amount of income you can earn while receiving disability retirement.

However, if you’re under age 60, you can earn income from work while also receiving disability retirement benefits. Note that your disability annuity will cease, if the United States Office of Personnel Management determines that you’re able to earn an income that’s near to what your earnings would be if you’d continued working.

Fed Week’s recent article entitled “The Limits on Earnings for Disability Retirees” says that the retirement law has set an earnings limit of 80% for you to still keep getting your disability retirement. You reach the 80% earnings limit (or are “restored to earning capacity”) if, in any calendar year, your income from wages and self-employment is at least 80% of the current rate of basic pay for the position from which you retired.

All income from wages and self-employment that you actually get plus deferred income that you actually earned in the calendar year is considered “earnings.” Any money received before your retirement isn’t considered “earnings.”

The government says that income from wages includes any salary received while working for someone else (including overtime, vacation pay, etc.). Income from self-employment is any net profit you made from working or managing your own business—whether at home or elsewhere. Net profit is the amount that’s left after deducting business expenses and before the deduction of any personal expenses or exemptions as allowed by the IRS. Deferred income is any income you earned but didn’t receive in the calendar year for which you’re claiming income below the 80% earnings limitation.

If you’re reemployed in federal service, and your salary is reduced by the gross amount of your annuity, the gross amount of your salary before the reduction is considered “earnings” during the calendar year.

The following aren’t considered earnings:

Gifts
Pensions and annuities
Social Security benefits
Insurance proceeds
Unemployment compensation
Rents and royalties not involving or resulting from personal services
Interest and dividends not resulting from your own trade or business
Money earned prior to retirement
Inheritances
Capital gains
Prizes and awards
Fellowships and scholarships; and
Net business losses.

If you’re under age 60 and reemployed in a position equivalent to the position you held at retirement, the Office of Personnel Management will find you recovered from your disability and will cut off your annuity payments.

Reference: Fed Week (Nov. 4, 2021) “The Limits on Earnings for Disability Retirees”

Alexa, How Can You Help Seniors

Amazon’s new programs run through Alexa Smart Properties, which allows organizations to control a centralized Alexa system, according to MSN’s recent article “Amazon announces Alexa program for hospitals and senior care.”

“Early on in the pandemic, hospitals and senior living communities reached out to us and asked us to help them set up Alexa and voice in their communities,” Liron Torres, global leader for Alexa Smart Properties, said in an interview with The Verge.

“Hospitals wanted ways to interact with patients without using protective equipment, and senior living communities wanted to connect residents with family members and staff,” Torres says.

The program allows senior living facilities to employ Amazon Echo devices to send announcements or other messages to residents’ rooms. During the COVID-19 pandemic, many facilities relied on printed out sheets of paper slipped under resident doors to communicate changes in protocols, like around meals or quarantines. However, the Alexa program now lets them send messages immediately into patient rooms.

“Staff can be more available for other tasks,” Torres says.

Senior facility residents can also place calls through Alexa to family members or friends, without having to rely on a staff member. Approved contacts would also be able to call in through Alexa. The facility could enable calling for a list of contacts approved by the resident and family members when they arrive.

Two networks of senior living communities, Atria (which is nationwide) and Eskaton (based in California), are adding Alexa to some facilities, Amazon announced.

In hospitals, the Alexa Smart Properties program allows nurses to speak with patients through the calling and intercom-type drop-in features without having to enter patient rooms. Patients could ask questions, or nurses could see how a patient is feeling with this feature.

“This enables hospitals to increase productivity and be able to save on medical supplies,” Torres says.

Hospitals can also send information and announcements to patients through Alexa.

Reference: MSN (Oct. 25, 2021) “Amazon announces Alexa program for hospitals and senior care”

What are Latest Trends in Senior Care Facility Design?

iAdvance Senior Care’s recent article entitled “The Newest Trends in Senior Care Facility Design” interviewed Christine Cook, NCARB, principal with the Dallas-based design boutique three. She explained that she’s seeing several new trends that are shaping the industry.

“Owners and operators are working to connect through lifestyle choices, in combination with a healthcare amenity, to reach the target pool of prospective residents. ‘Active aging’ and ‘purposeful lifestyles’ resonate favorably with both residents and their families. This shifts the perception away from residency as need-based or compelled to a feeling of joining the community by choice,” she remarked.

Other design trends include more tailored residential apartments and cottages. There is also an increased demand for amenities, both on-site and within walking distance.

“Also, it is foundational to ensure consistency of the design aesthetic and quality of materials across the continuum-of-care, from independent living to assisted living and memory care,” says Cook.

Cook also said that many existing communities are decreasing their skilled nursing offerings. They’re customizing assisted living and memory care environments, tailoring them to the residents’ needs. “Most new communities are not incorporating skilled nursing at all.”

The COVID-19 pandemic has also prompted an increased focus on cleanliness and practical material selection. “Escalating cleaning protocols are demanding increased attention to the selection of finishes,” says Cook.

“Materials must be durable and resilient, otherwise replacing them when they wear out will have to be cost-effective — think modular cabinetry or tile flooring. We have also had to address plans for processional arrival sequences at entryways, modifying and limiting them to ensure there will be no security breaches with respect to disease migration.”

She’s also seen an uptick in requests for no-touch access controls for resident and staff-only areas. Cook notes that there’s also a market preference for larger balconies and full-height windows to allow for more natural daylight. Designs that reinforce healthy connections to nature, like balconies doubling as outdoor great rooms, can prompt residents to be more inspired and engaged.

However, Cook says that owner-operators frequently describe two common challenges: Keeping occupancy rates high and attracting and retaining high-quality, mission-focused staff.

Cook thinks that several trends will continue to define the senior care market in the future. These include increased demand for pocket-park communities, which usually consist of 10 to 12 cottages that are organized around or near an activity center. These communities are often developed in association with a larger senior care community or health provider.

Reference: iAdvance Senior Care (Oct. 12, 2021) “The Newest Trends in Senior Care Facility Design”

How Do I Hire an Elder Law Attorney?

Elder law attorneys are lawyers who assist the elderly and their family members, and caregivers with legal questions and planning related to aging.

These attorneys frequently are called upon to assist with tax planning, disability planning, probate and the administration of an estate, nursing home placement, as well as a host of other legal issues, says Forbes’ recent article entitled “Hiring An Elder Law Attorney.”

In addition, there are some elder law attorneys who have the designation of Certified Elder Law Attorney (CELA), a certification issued by the National Elder Law Foundation. A Certified Elder Law Attorney must meet licensing and other requirements, including specific experience in elder law matters and continuing education in elder law. However, note that an elder law attorney does not need to have the CELA certification to be an experienced elder law attorney.

There are many elder law attorneys who specialize in Medicaid planning to help protect a senior’s financial assets, if they suffer from dementia or another debilitating illness that may require long-term care. Elder law attorneys also prepare estate documents, such as a durable power of attorney for health and medical needs and a living will. As you age, the legal issues that you, your spouse, and/or your family caregivers must address can also change.

If you are a senior, then you should have durable powers of attorney for financial and health needs, in the event that you or your spouse becomes incapacitated. You might also need an elder law attorney to help you transfer assets if you or your spouse move into a nursing home to avoid spending your life savings on long-term care.

Healthy people over 65 are in the best spot to do more than having estate planning documents prepared. That’s because they have the opportunity to develop a holistic strategy beyond the legal documents. This can give assurances that the family members and professionals they’ve assembled understand the principle of supported decision-making and how it will be implemented.

For example, an elder law attorney may focus on finding the least restrictive residential environment and making other health care and financial choices. An elder law attorney can also protect seniors with diminished capacity, who are being victimized by personal and financial exploitation.

An initial consultation with an elder law attorney will help determine the types of legal services they can offer, and the fees associated with these services.

Reference: Forbes (Oct. 4, 2021) “Hiring an Elder Law Attorney”

How Can I Conduct a Family Meeting about Family Wealth Planning?

Kiplinger’s recent article entitled “It’s Never Too Late for a Family Meeting – Here’s How to Do Them Well” emphasizes that no matter the amount of wealth that a family has, wealth education is crucial to overall financial education, preparing for the future and to becoming a good steward of an inheritance.

Family meetings are a great way of bringing members of a family together with a goal of facilitating communication and education. This allows for sharing family stories, communicating values, setting goals to help ensure transparency and helping members across generations understand their roles around stewardship and wealth.

Here are some ideas on how to have an effective family meeting:

Prepare. The host of the meeting should spend time with each participating family member to help them understand the reason for the meeting and learn more about their expectations. There should be a desire and commitment from the participants to invest time and effort to make family meetings a success.

Plan. Create a clear agenda that defines the purpose and goals of each meeting. Share this agenda with participants before the meeting. Select a neutral location that makes everyone comfortable and encourages participation.

Have time for learning. Include an educational component in the agenda, such as an introduction to investing, estate planning, budgeting and saving, or philanthropy.

Have a “parking lot.” Note any topics raised that might need to be addressed in a future meeting.

Use a facilitator. Perhaps have a trusted adviser facilitate the meeting. This can help with managing the agenda, offering a different perspective, calming emotions and making certain that everyone is heard and understood.

Follow up. Include some to-do’s and schedule the next meeting to set expectations about continuing to bring the family together.

Reference: Kiplinger (Sep. 1, 2021) “It’s Never Too Late for a Family Meeting – Here’s How to Do Them Well”

Will Vets Get a Cost-of-Living Boost?

The Veterans’ Compensation Cost-of-Living Adjustment Act passed unanimously in the House and without objection in the Senate earlier in the summer. By the time you read this, President Joe Biden is expected to sign it into law.

Military Times’ recent article entitled “Veterans benefits could see a big cost-of-living boost later this year” explains that the legislation links the cost-of-living boost for veterans benefits to the planned increase in Social Security benefits. Although the Social Security increase is automatic every year, lawmakers must approve the veterans benefits increase annually.

The amount of the increase for next year is still not certain. The Social Security Administration is expected to announce the COLA rate for 2022 in October, based on economic trends over the last few months. That increase will go into effect for benefits checks sent out starting this December.

The cost-of-living bump hasn’t been above 3.0% since 2011, and has averaged less than 1.3% over the last six years.

However, officials from the Senior Citizens League predicted that next year’s rise could top 6.2%, based on recent inflation and wage data released by federal economists. If so, it would be the largest increase since 1983 for Social Security and VA benefits recipients.

Lawmakers praised the bill passage as needed support for American veterans.

“The cost-of-living adjustment to veterans’ benefits is so much more than a rate adjustment tied to inflation,” said Rep. Mark Takano, D-Calif., in a statement. “It is a quality-of-life guarantee in the retirement years for veterans suffering with service-connected disabilities and ailments.”

VA officials will announce the plan soon, which includes a review of service records to see if individuals’ eligibility for benefits should be approved.

Committee ranking member Mike Bost, R-Ill., said the increase is critical for veterans and families who rely on disability benefits as a primary source of income.

“Many veterans rely on disability compensation payments to make ends meet; this was especially true during the pandemic,” he said in a statement. “For millions of veterans and their families, this adjustment is more important now than ever before.”

The VA COLA increase applies to payouts for disability compensation, clothing allowance, dependency and indemnity benefits and other VA assistance programs.

Reference: Military Times (Sep. 21, 2021) “Veterans benefits could see a big cost-of-living boost later this year”

How Does a Conservatorship Work?

Kiplinger’s recent article titled “Britney Spears’ Sad Song … Warning: This Could Happen to You” says that conservatorship is a topic that’s been in the news lately with Britney’s recent court battle.

In Britney’s case, while there has not been any evidence alleged of actual fraud or financial abuse in her conservatorship, she lost nearly all control over her finances, her business affairs and the most personal aspects of her life.

She also doesn’t want her father to be the person to hold that much power or control over her life.

A judge can take charge of an individual’s personal and financial decisions and appoint a third party to make decisions almost on an unlimited basis. These proceedings can exact a significant emotional toll and be tremendously expensive and time-consuming.

Conservatorship can happen to anyone, if and when you’re too disabled (due to an accident or illness) or too incompetent (due to infirmity of mind, old age or dementia, or a similar condition) to handle your own affairs.

If your estate plan addresses this with a chain of command to act on your behalf, no formal court proceedings would be required. Your wishes can be honored, and all the drama like that which Britney Spears has endured can be avoided.

If you are under age 60, there is a four to five times greater likelihood that you’ll become disabled, due to an accident or illness, for a period of more than one year, than your chances of dying. This is because modern medicine can often prevent death but not cure the illness or condition causing the disability. If you’re over age 60, there’s a 70% chance that, during your remaining lifetime, you’ll be too disabled or incompetent to act for yourself, for a period of at least two to 2½ years.

However, Britney Spears’ battle to end her court-ordered conservatorship took an unexpected turn recently, when her father and the conservator of her estate, Jamie Spears, filed a petition to end the arrangement. Mr. Spears cited his daughter’s pleas at two separate court hearings over the summer in his request to terminate the 13-year conservatorship.

“Recent events related to this conservatorship have called into question whether circumstances have changed to such an extent that grounds for establishment of a conservatorship may no longer exist,” the filing states.

Reference: Kiplinger (July 14, 2021) “Britney Spears’ Sad Song … Warning: This Could Happen to You”

What Is a Power of Attorney?

Any responsible adult can act as your agent. South Florida Reporter’s recent article entitled “Everything You Should Know About Power of Attorney” says this is an important decision that shouldn’t be handled lightly.

A power of attorney or “POA” is a legal document that authorizes a trusted person (the “agent” or “attorney-in-fact”) to make decisions on your behalf (the “donor” or “grantor”).

The authority can be broad, or it can be narrow for only specific actions.

There are two basic types of powers of attorney: one for finances and another for medical decisions.

A financial POA provides your agent with the authority to make financial and property decisions on your behalf. This may include handling your bank or building society accounts, collecting a pension or benefits, paying bills, or selling your house. Once registered, you can use it right away or keep it till you lose your mental capacity.

A medical POA lets your agent make decisions about your medical care and placement in a care facility, including life-sustaining medical care. It should only be used if you’re incapable of making your own decisions, and you must agree to it while you are still capable of doing so.

These specifics may vary, but the following are general guidelines that typically apply:

Write it down
Determine the parties
Delegate the authority
Define the term “durability”; and
Get the POA notarized.

Appoint a person as your representative who’s both trustworthy and capable.

Reference: South Florida Reporter (July 18, 2021) “Everything You Should Know About Power of Attorney”

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Can I Claim Grandfather’s Unclaimed Insurance Policy?