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  1. 1. Guardianship Power of Attorney Disability Insurance Long Term Care Insurance Kristin Maniaci, Laura Swartz, Kevin Eaton, Katie Johnson, Krista Walker, Ryan McGovern, Jennifer Mehring, Laura Myers
  3. 3. Guardianship <ul><li>Definition: the legal process by which a court determines that a person is incapable of making decisions about some or all areas of life. </li></ul><ul><li>Guardian may also be called a conservator. </li></ul><ul><li>Person with a guardian may be called a “ward”, an “incapacitated person”, or a “protected person” </li></ul>
  4. 4. Some Rights Affected by Guardianship <ul><li>Residence </li></ul><ul><li>Medical treatment </li></ul><ul><li>End-of-life decisions </li></ul><ul><li>Driver’s license </li></ul><ul><li>Property decisions </li></ul><ul><li>Firearms or weapons </li></ul><ul><li>Lawsuits </li></ul><ul><li>Marry </li></ul><ul><li>Vote </li></ul>
  5. 5. Avoiding Guardianship <ul><li>Alternatives for: </li></ul><ul><ul><li>Financial decisions </li></ul></ul><ul><ul><li>Health care decisions </li></ul></ul><ul><ul><li>Living wills </li></ul></ul>
  6. 6. Establishing Guardianship <ul><li>Procedure </li></ul><ul><ul><li>Talk to lawyer about your state’s requirements </li></ul></ul><ul><ul><li>File petition </li></ul></ul><ul><ul><li>Examination </li></ul></ul><ul><ul><li>Notice </li></ul></ul><ul><ul><li>Court visitor </li></ul></ul><ul><ul><li>Lawyer and court hearing </li></ul></ul>
  7. 7. Who can be a Guardian? <ul><li>Family members </li></ul><ul><li>Friend </li></ul><ul><li>Public Guardian (state agency) </li></ul><ul><li>Important undertaking </li></ul><ul><li>A bank </li></ul><ul><li>A volunteer </li></ul>
  8. 8. Two types of guardianship <ul><li>Guardianship of the person </li></ul><ul><li>Guardianship of the estate </li></ul>
  9. 9. Guardianship of the person <ul><li>List of possible responsibilities: </li></ul><ul><li> - Living arrangements </li></ul><ul><li>- Arrange for caregivers, social activities, transportation </li></ul><ul><li>- Medical arrangements </li></ul><ul><li>- Supervise hygiene, meals, and clothing </li></ul><ul><li>- Therapies </li></ul><ul><li>- Frequent visits </li></ul><ul><li>- Report to the court </li></ul>
  10. 10. Guardianship of the estate <ul><li>List of possible responsibilities: </li></ul><ul><ul><li>Ward’s assets </li></ul></ul><ul><ul><li>Accounts </li></ul></ul><ul><ul><li>Spending the ward’s money </li></ul></ul><ul><ul><li>Records </li></ul></ul><ul><ul><li>Ward’s property </li></ul></ul><ul><ul><li>Investing </li></ul></ul><ul><ul><li>Inventories and accounts </li></ul></ul>
  11. 11. Guardian as a Surrogate Decision-Maker <ul><li>Substituted Judgment </li></ul><ul><li>Best Interest </li></ul>
  12. 12. Goal of Guardianship <ul><li>Restore the rights of the individual who, for whatever reason, has had some of them removed by a court after due process. </li></ul>
  13. 13. Removing or Replacing a Guardian <ul><li>Process </li></ul><ul><li>- Petition </li></ul><ul><li>- Hearing </li></ul><ul><li>-Evidence </li></ul><ul><li>-Court’s decision </li></ul>
  15. 15. Durable Power Of Attorney <ul><li>Many of us feel a well-grounded fear that we may someday become seriously ill and unable to handle our own affairs. Who would act on our behalf to pay bills, make bank deposits, watch over investments and deal with the paperwork that accompanies collecting insurance and government benefits? </li></ul>
  16. 16. Durable Power of Attorney <ul><li>Preparing a document called a durable power of attorney for finances is a simple, inexpensive and reliable way to ensure that your finances stay in the hands of a trusted person you choose. It's also a wonderful thing to do for your family members. If you do become incapacitated, the durable power of attorney will likely appear as a minor miracle to those close to you. </li></ul>
  17. 17. Durable Power of Attorney <ul><li>What does a durable power of attorney do? </li></ul><ul><ul><li>Gives another person legal authority to act on your behalf </li></ul></ul><ul><ul><li>“ Attorney-in-fact” is the person who is given this authority </li></ul></ul><ul><ul><li>Stays valid even if you become unable to handle your own affairs (incapacitated) </li></ul></ul><ul><li> </li></ul>
  18. 18. Durable Power of Attorney <ul><li>When does a durable power of attorney take effect? </li></ul><ul><ul><li>Can be drafted so that it goes into effect as soon as you sign it </li></ul></ul><ul><ul><li>Can also be specified that it will not go into effect unless a doctor certifies that you have become incapacitated (also known as the “springing” durable power of attorney) </li></ul></ul>
  19. 19. Durable Power of Attorney <ul><li>What does the attorney-in-fact do? </li></ul><ul><ul><li>Commonly, people give an attorney-in-fact broad power over their finances. But you can give your attorney-in-fact as much or as little power as you wish </li></ul></ul><ul><ul><ul><li>e.g. use your assets to pay your everyday expenses and those of your family, invest your money in stocks, bonds, and mutual funds, or buy and sell insurance policies and annuities for you. </li></ul></ul></ul><ul><ul><li>Whatever powers you give the attorney-in-fact, the attorney-in-fact must act in your best interests, keep accurate records, keep your property separate from his or hers and avoid conflicts of interest. </li></ul></ul>
  20. 20. Durable Power of Attorney <ul><li>How to create a durable power of attorney </li></ul><ul><ul><li>All you need to do is properly complete and sign a fill-in-the-blanks form that's a few pages long. Some states have their own forms. </li></ul></ul><ul><ul><li>After you fill out the form, you must sign it in front of a notary public. In some states, witnesses must also watch you sign the document. If your attorney-in-fact will have authority to deal with your real estate, you may also need to put a copy on file at the local land records office. </li></ul></ul>
  21. 21. Durable Power of Attorney <ul><li>What happens if I don't have a durable power of attorney for finances? </li></ul><ul><ul><li>Your spouse, family, and/or close friends will probably have to go to court to ask for authority over some or all of your financial affairs. </li></ul></ul><ul><ul><li>A conservator is appointed by the judge, usually in the beginning of the proceedings </li></ul></ul><ul><ul><li>A conservatorship isn't necessarily permanent, but it may be ended only by the court </li></ul></ul>
  22. 22. Durable Power of Attorney <ul><li>When is it a good time to use a Conservatorship? </li></ul><ul><ul><li>In a few situations, the expense and intrusion of a conservatorship are justified </li></ul></ul><ul><ul><ul><li>There's no one you trust enough to give broad authority over your property and finances </li></ul></ul></ul><ul><ul><ul><li>You have a considerable amount of property and fear that family members would fight over its management if you appointed an attorney-in-fact </li></ul></ul></ul>
  23. 23. Durable Power of Attorney <ul><li>Do you still need a durable power of attorney if you have a living trust? </li></ul><ul><ul><li>Few people transfer all their property to a living trust, so a living trust is not a complete substitute for a durable power of attorney for finances </li></ul></ul>
  24. 24. Durable Power of Attorney <ul><li>Can my attorney-in-fact make medical decisions on my behalf? </li></ul><ul><ul><li>No. A durable power of attorney for finances does not give your attorney-in-fact legal authority to make medical decisions for you </li></ul></ul><ul><ul><li>You can, however, prepare a durable power of attorney for healthcare, a document that lets you choose someone to make medical decisions on your behalf if you can't </li></ul></ul>
  25. 25. Durable Power of Attorney <ul><li>When does the durable power of attorney end? </li></ul><ul><ul><li>It ends at one of two times </li></ul></ul><ul><ul><ul><li>At the time of your death </li></ul></ul></ul><ul><ul><ul><li>If you recovery sufficiently from your injury or illness and revoke it </li></ul></ul></ul>
  26. 26. Durable Power of Attorney <ul><li>Where can I get a durable power of attorney form? </li></ul><ul><ul><li>There is no one good source…however, about a dozen states, including Wisconsin, have there own fill in the blank forms for you to use </li></ul></ul><ul><ul><li>They are found in each state’s statute books </li></ul></ul>
  28. 28. What is disability insurance? <ul><li>Weekly or Monthly </li></ul><ul><li>Percentage of income or set dollar amount. </li></ul><ul><li>Periods depend on accident or illness. </li></ul><ul><li>The longer the benefit period, the higher the premium will be. </li></ul>
  29. 29. How is disability defined? <ul><li>Individual policies commonly use one of two definitions of &quot;disability&quot;. </li></ul><ul><li>One definition is that you are unable to perform your own occupation </li></ul><ul><li>The second definition is disability in terms of your inability to perform any occupation for which you are suited by education and experience. </li></ul>
  30. 30. Types of Disability <ul><li>Non-cancelable policy : premiums are fixed over the term of the policy. The insurer cannot jack up the rates, decrease your benefits, cancel or refuse to renew the policy. </li></ul><ul><li>Guaranteed renewable policy : premiums can be raised so long as the change affects an entire category of occupations, policyholders, etc. </li></ul><ul><li>Conditionally renewable policies : premiums can go up and coverage can be canceled in the event any conditions stated in the policy are triggered. </li></ul><ul><li>  </li></ul>
  31. 31. Do disability policies cover both accident and sickness? <ul><li>No. Policies are available to cover disability due to an accident only or due to either accident or illness. It could be wallet-wrenching if your policy differentiates between accident and sickness. </li></ul>
  32. 32. State Disability Programs <ul><li>Only a handful of states (California, Rhode Island, New Jersey, Hawaii and New York) pay for off-the-job injury, sickness, and pregnancy, funded through employer contributions. The benefit amounts, the benefits available, the type of illnesses covered, and waiting periods vary greatly from state to state. </li></ul>
  33. 33. Is disability insurance income subject to income tax? <ul><li>The answer depends on who pays the premiums. </li></ul><ul><li>If you pay for the disability insurance yourself, out-of-pocket, the benefits you receive are 100% tax free. </li></ul><ul><li>If your employer pays the premium, you pay tax on the benefits you receive while disabled. </li></ul>
  34. 34. Exclusions <ul><li>An &quot;exclusion&quot; is a statement in an insurance policy which describes a condition or type of loss that is not covered by the policy. </li></ul><ul><li>An exclusion is an exception to the general statement of coverage contained in the policy. </li></ul><ul><li>However, after the policy has been in effect for a specified period of time (often six months to one year), the limitation will no longer apply and subsequent treatment for the preexisting illness or condition will be covered. </li></ul>
  35. 35. Limitations <ul><li>A provision found in some policies which is similar to an exclusion is called a &quot;limitation.&quot; A limitation also is an exception to the general statement of coverage but is applicable only under certain circumstances or for a specified period of time. </li></ul><ul><li>Example </li></ul><ul><li>Legal Implications </li></ul>
  36. 36. Business Requirement <ul><li>Is a business required to provide disability insurance? No. While it is common to provide &quot;employee benefit&quot; coverage for workers, the law generally does not require a business to do so. </li></ul><ul><li>HIPAA </li></ul>
  38. 38. What is Long Term Insurance? <ul><li>The average cost of residing in a nursing home is about $55,000 per year. </li></ul><ul><li>The average stay is approximately 2 ½ years. </li></ul><ul><li>LTC helps to pay for the cost of care in the event you become unable to care for yourself due to illness, injury or disability. </li></ul>
  39. 39. What does LTC Insurance Provide? <ul><li>Depending on the policy, LTC Insurance can help pay for things like: </li></ul><ul><li>Nursing Home Stays </li></ul><ul><li>Assisted Living Facilities </li></ul><ul><li>Residential Care Facilities </li></ul><ul><li>Adult Foster Care Homes </li></ul><ul><li>Home Health Care Services </li></ul>
  40. 40. Who is effected by long term care? <ul><li>One half of women and one third of men age 65 and older will spend some time in a nursing home. </li></ul><ul><li>The average cost is about $55,000 per year and the average stay is approximately 2 ½ years. </li></ul>
  41. 41. When should you purchase LTC Insurance? <ul><li>If you do not have enough income to pay for the cost of long term care, then you may want to consider purchasing LTC insurance. </li></ul><ul><li>The target market age group for buying this type of insurance is around 50 years old. </li></ul><ul><li>The advantage of purchasing insurance at a younger age is the premiums are cheaper than if you wait until you are older or possibly develop a medical condition that prohibits coverage. </li></ul>
  42. 42. Benefits of having LTC Insurance <ul><li>LTC Insurance helps to protect your assets. </li></ul><ul><li>LTC Insurance helps to provide a better quality of care. </li></ul><ul><li>LTC Insurance provides a sense of security. </li></ul>
  43. 43. Medicare/Medicaid <ul><li>Medicare covers people over 65 years of age. </li></ul><ul><li>Medicare covers some people with disabilities. </li></ul><ul><li>Medicare only covers a portion of the costs. </li></ul><ul><li>Medicaid covers low income people. </li></ul><ul><li>Medicaid can cover approximately ½ of the cost. </li></ul>
  44. 44. Negatives of Long Term Care <ul><li>Potential for Fraud </li></ul><ul><ul><li>Constant increase in premiums </li></ul></ul><ul><li>Fixed dollar amount or percentage of cost for services </li></ul><ul><li>What is actually being offered </li></ul><ul><ul><li>Read fine print </li></ul></ul>
  45. 45. Precautions <ul><li>Inflation Protection </li></ul><ul><ul><li>Valuable and Important </li></ul></ul><ul><ul><li>EX: Nursing home costs today $100/day, 8% inflation </li></ul></ul><ul><ul><li>What will the cost per day be in 18 to 20 years? </li></ul></ul><ul><li>Dishonest Agents </li></ul><ul><ul><li>Few charged and reported for misrepresenting benefits or rights </li></ul></ul>
  46. 46. Consumer Awareness <ul><li>Requiring prior hospitalization </li></ul><ul><li>Requiring an acute condition before services will be covered </li></ul><ul><li>Requiring Medicare-certified providers </li></ul><ul><li>Covering only “skilled” care </li></ul>
  47. 47. Awareness Cont. <ul><li>Inability to perform 3 or more Activities of Daily Living (ADLs) </li></ul><ul><ul><li>ADLs: Bathing, Dressing, Toileting and Transferring (in and out of chair or bed) </li></ul></ul><ul><li>What actually constitutes “needed assistance” </li></ul><ul><li>Service-based rather than disability-based </li></ul>
  48. 48. THANK YOU <ul><li>That ends our presentation. </li></ul><ul><li>At this time we would like to play a game to test your knowledge on Long-Term Disability and Care Planning. </li></ul>