Planning for Life:

Margolis & Associates

Estate and Elder Law Planning Solutions

Protecting Yourself,

Your Family

and Your Estate

AgendaAgenda

• Introduction of program and handouts

• Presentation

• Introduction of Margolis Associates

• Questions and answers

• Attorneys of Margolis & Associates will be available for 15 minutes to answer personal questions after the program

Why Plan?

• Maintain your own and your family’s quality of life

• Ensure that your wishes for yourself and your family are carried out

• Positive legacy

• Peace of mind!

Attack on Medicaid Planning

“Medicaid must not become an inheritance protection plan. Right now, many older Americans take advantage of Medicaid loopholes to become eligible for Medicaid by giving away assets to their children…. We must close these loopholes and focus Medicaid's resources on helping those who really need it. Doing so will save $4.5 billion during the next decade.”

-- Mike Leavitt, Secretary of H&HS

A Few Statistics

• National Spending on Nursing Home Care (2003)

Total Expenditures: $111 billion

Medicaid 42.0%Out-of-pocket 27.9%Medicare 12.4%Private Insurance 7.7%Other 6.1%

A Few More Statistics

Population (in millions)

65+ 85+

2003 35.9 4.7

2030 71.5 9.6

Just a Few More Statistics

Percentage of Seniors Who Need Assistance

Age Percent

65-69 8.1

70-74 10.5

75-79 16.9

80+ 34.9

We’re almost done with the numbers

Caregivers• 44.9 million (21% of adult population)• Average of 21 hours a week• But half provide 8 or fewer hours a week• 17% provide 40 or more hours a week• 34% care for mother, 11% for grandmother

and 10% for father

The rabbi, the priest and the lawyer

Moral: You can’t take it with you

How the beloved niece lost out

Moral: Get professional help

Donna’s Dilemma

Donna’s husband, George, has Alzheimer’s disease and has moved to a nursing home costing $8,000 a month. She’s terrified that she’ll lose her savings and not be able to afford to live herself.

What should she do?

What Donna has

IncomeGeorge Donna

Social Security $1,600/mo $800/mo Pension $600/mo

Savings & IRAs $300,000Home FMV $400,000

What should Donna do?

• Spend down

• Transfer into her name

• Buy immediate annuity

• Update her estate plan

• Increased spousal allowance

Wanda the Worrier

What is Wanda worried about?

Losing her home!

When does she worry?

All of the time!

Wanda’s Solutions

• Life estate

• Irrevocable trust

• Long-term care insurance

Wanda’s New Worry

Her (no good) son-in-law

Wanda’s New Solution

• Family Protection Trust

– Divorce

– Bankruptcy

– Spendthrift

– Financial aid

– Death

The World Traveler

Moral: Don’t procrastinate

The Top Eight Mistakes of Medicaid Planning

• Thinking it’s too late to plan• Giving away assets too early• Ignoring safe harbors• Ignoring spousal protections• Applying too early• Applying too late• Confusing liens and estate recovery• Not getting expert help

Our Ad

• Initial Consultation - $500/$250

• Applied towards future work

• Discount for attendees

• Non-transferable

• Expiration date

• Peace of mind.

Our Approach

“I loved your letter. It was in English.”

- recent client from Cambridge

The Margolis & Associates Team

• Lawyers– Harry S. Margolis– Jeffrey A. Bloom– Jennifer K. Rankin– Alyssa Adams

• Paralegals– Eugenia Kofitsas– Maana Soroken– Angela Lourio

Margolis & AssociatesEstate and Elder Law Planning Solutions• Our Offices

– Boston• 535 Boylston Street

– Framingham• 340 Union Avenue

• Our Web Site– www.margolis.com

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