Debbie’s sister, Kathy (who owns “Poppin’ on Broadway” in downtown Waukesha) is hosting a benefit at the Montecito Ristorante in downtown Waukesha on JULY 15, 2012 (Sunday) from 1:00 to 7:00 p.m.  Service dogs are welcome!  The address of the restaurant is:  257 W. Broadway in downtown Waukesha.  If you cannot attend, but would like to donate to “The ‘Lexi’ Legacy” Benefit Fund, please send your donation to:  Waukesha State Bank, 151 E. St. Paul Avenue, PO Box 648, Waukesha, WI  53187-0648.

As Kathy says, “Lexi is a hero!”  Please donate to help Debbie with her great loss and to honor Lexi’s memory!

Even though I do not know Debbie personally, I do know why it is important to support her during this difficult time.  My late uncle Roy had a seeing eye dog named “Eli.”  My Uncle Roy received Eli after serving during the Viet Nam war and suffering blindness.  Eli was a huge, beautiful German Shepherd.  Eli meant the world to Uncle Roy, and we all knew it and loved Eli for giving Uncle Roy his life back.  I specifically remember a Christmas family gathering where my young cousins were climbing all over Eli, even opening his huge, imposing jaws to look at Eli’s teeth.  Eli just laid there, patiently tolerating this type of attention.  After Eli died, my uncle was devastated.  We all supported him, but I don’t think any of us really knew how much more support he needed than we gave.  At that time, I do not think that any of us realized the extent of his devastation because Uncle Roy was quiet, a strong and proud military man who did not let his pain show.  As time passed following Eli’s death, my Uncle Roy became more and more reclusive.  He passed away last year after becoming a recluse, rejecting family love and support.  We all loved Uncle Roy, and we all believe that the death of Eli started his decline.  The lesson to be learned is that there is no time better than right now to support Debbie – let her know that we understand what Lexi meant to her, what Lexi truly gave to her, and that we support her during this difficult time.

I called Cynthia a few weeks ago.  She has since divorced and moved to Wyoming.  Unfortunately, she is feeling the effects of severe arthritis.  We had a wonderful talk!  After we hung up, I looked through my photographs and picked out a few pictures I thought she would enjoy because it has been decades since we have seen each other.  I sent her the pictures and a long letter.  She called me after receiving the pictures and the letter.  Her closest friend had died a couple of days before she received the pictures (but after our phone call).  Cynthia said that she felt very alone after her friend died, and that my letter and the photos meant a great deal to her.

Touch base with an old friend!  It will make you smile and warm up an old friend’s heart!  Let me know how it goes!

“A caregiving contract?  That is absurd.  A child should take care of there [sic] parents no matter what and never be paid to do so.  A child should do all that out of the kindness of their heart and not expect money….”

I wholeheartedly agree that children should take care of their parents and/or help the parents make appropriate arrangements for the best possible care out there!  However, here is just one example of a typical client’s situation that DOES warrant a paid caregiver contract, notwithstanding the love and care between the parent and child – the case below describes a mother and a daughter/caregiver:

Daughter is unemployed.  She is taking care of her mother.  She needs income badly and has a hard time meeting her expenses and her debts are increasing.  Due to the amount of time she spends caring for her mother, she not only has an extremely difficult time searching for a job, but she has no idea how she would realistically work at a job due to all of the hours she devotes to her mother and her mother’s care needs.  Mother cannot afford home health care or adult day care and relies on her daughter.  Mother is the widow of a veteran.  By arranging a paid caregiver contract between mother and daughter, mother qualified for VA pension benefits (aid & attendance) and daughter now has income to pay her bills and not go deeper into debt.  Daughter feels a tremendous sense of relief.  Mother now has added income from the VA to help pay for care, and her daughter/caregiver is less stressed.

To the person who made the comment, thank you for reading my post, and I hope you come back and see my reply!

Are you or a family member paying for assisted living or skilled nursing care?  All or a portion of these expenses may qualify you for a medical expense deduction on your personal tax return!  First, in order to itemize taxes using Form 1041 – Schedule A.  Medical expenses exceeding 7.5% of your adjusted gross income qualify for the deduction.  You might be surprised at the wide variety of deductions available.  Take a look at the following list, and if any of the items apply to you, consult with your accountant or attorney.  Allowable deductions include:

Medicare Part B and D premiums; long-term care insurance premiums for qualified policies; ambulance bills; annual physical exams; eye exams; glasses; surgery; hearing aids; artificial limbs; artificial teeth; bandages and medical supplies; oxygen; wheelchairs; body scans; x-ray costs; diagnostic services; car mileage to and from medical appointments; transportation to and from medical care such as bus, taxi, train fares; dental treatment; drugs (prescription, not over-the-counter); home care; hospital care; nursing care; personal care; assisted living facilities and nursing homes (includes the cost of meals and lodging if the principle reason for being there is to get medical care, and if the reason is not personal); advance payments for lifetime care (a nursing home deposit); capital expenses to install special equipment in your home for medical care (i.e. wheelchair ramps, installing grab bars, lowering cabinet doors, grading the ground outside the home to provide better access).

With health care costs continually rising, it benefits you to take the time to document the previous listed expenses and run the calculations.  This is especially true for those on a fixed income.  Whether your deduction is hundreds or more, ever little bit helps!  Take the time to save your documentation!

This was a new situation to me and I did not know how to react or what to do.  My grandmother lived a state away, in Illinois, and it seemed that every minute of mine was filled with managing my law practice and dealing with my daily life.  My friend told me that the coming weeks would be a period of time in my life that I would never get back.  She told me to spend it wisely.  I listened to her advice.  Each and every weekend I dropped anything and everything I was doing and I drove to Illinois to visit my grandmother.

I had wonderful visits with my grandmother.  I knew the visits meant alot to her, and they meant alot to me.  Not being one for telling people how I feel, I also wrote her a letter telling her how much she meant to me and why.  After she passed away, it meant a great deal to me to hear that she kept my letter in the night stand next to her bed.  I know that she read the letter and I know that she knew how I felt about her.  Knowing that gave me a true sense of peace.

Of of the last things my grandmother said to me was, “Joanne, you need to write.”  Well, Grandma, I am doing that now, and I honestly can’t think of anything better to write about than how much you meant to me, and how happy I am that you knew it.  I am happy to pass on some of the best advice I ever received.

Happy birthday, Grandma, on the 25th day of February.

FAMILY CAREGIVER AGREEMENTS

More and more, my clients find themselves either caring for a parent, or a parent client finds themselves in need of care, often provided by a son or daughter.  Some clients have sold their homes and have moved in with a son or daughter.  On occasion, a child has moved in with a parent to help the parent with care needs.  In some instances, the situation involves a son or daughter taking time to buy groceries and drop them off, cook on occasion, and arrange for and drive their parent to doctors appointments, etc.  If you find yourself in this situation, I recommend you consider a caregiving contract where the son or daughter is paid a reasonable fee for the care being given to the parent.  Caregiver agreements accomplish many goals, including:  (1) allowing the son or daughter to be compensated for time he or she is unable to work (or taking time off of work) to provide care, drive mom or dad to the doctor, shop, help with a bath or shower, cooking, dressing, etc.; (2) avoid “gifting” penalties from Medicaid (Title 19 or XIX); and (3) provide a medical expense deduction if the parent otherwise qualifies for Aid and Attendance benefits from the VA.

My estate planning clients often ask me to define or explain several terms that are extremely relevant and important to their estate planning process.  Following are the terms and definitions:

Personal Representative:  a personal representative is the person or entity who settles the deceased’s financial affairs, working through the court probate system.  If we are in the process of drafting your will (Last Will and Testament), I will need to know who you nominate to serve in this position.  Most spouses nominate each other and then provide me with alternate, or successor nominees.  Clients who choose trusts for their estate plan (properly drafted and managed trusts avoid the court probate system) still need to nominate personal representatives for their “pourover wills.”  Pourover wills are drafted hand-in-hand with trust documents.

Trustee:  a trustee is an individual or entity who sets aside property/financial assets to be used for the benefit of another person or persons, such as children.  The trustee manages the property and financial assets as provided by the terms of the document that created the arrangement (revocable living trust or testamentary trust).  A trustee is a fiduciary, meaning that the trustee is legally bound to act in the best interests of the beneficiary.

Guardian:  a guardian of the person is a person appointed by the court to take care of a minor child (or an incompetent adult).  The guardianship will remain in place until the minor turns age 18 (or until an incompetent adult is deemed competent).  A guardian of the estate is a person or entity appointed by the court to handle the financial affairs of a minor or incompetent adult.

CHANGE IS IN THE AIR!

Before January 1, 2012, Family Care and Medicaid applications were submitted directly to the applicant’s Economic Support Program in the county of residence.  Application processing took place in the same county.  As of January 1, the State of Wisconsin’s Department of Health and Human Services re-organized and consolidated the counties into consortiums.  Waukesha County is grouped in the Moraine Lakes Consortium, which includes the counties of Fond du Lac, Ozaukee, Washington, and Walworth.   Inquiries must now be made through the Moraine Lakes Consortium and not the individual county’s Economic Support division.