by Anthony J. Enea
Having spent approximately the last 30 years representing seniors and their families with a myriad of legal and familial issues impacting them as they age, I have unfortunately seen firsthand the havoc created by a diagnosis of Alzheimer”™s disease.
What has become most apparent is more and more individuals are being diagnosed with Alzheimer”™s disease or other forms of dementia-related illness such as Parkinson”™s disease and Lewy Body dementia. Sadly, I have also recently observed an increase in number of Alzheimer”™s diagnoses at ages earlier than one would normally expect. In recent years I have counseled a number of families where an Alzheimer”™s diagnosis was made of an individual in his 60s and two families where the diagnosis was made in their 50s and 40s; a truly frightening prospect.
The Alzheimer”™s Association, in its most recent projections, estimated there are presently 5.3 million individuals diagnosed with the disease. They have also projected that, by 2050, the number will grow to 13.8 million. That is a staggering number. The Alzheimer”™s Association is also predicting the costs associated with increased diagnoses to be $1.1 trillion yearly, mostly to Medicare and Medicaid.
Robert Egge, the chief public policy officer of the Alzheimer”™s Association, recently said, “Basically, it will bankrupt Medicare.” At all levels these projections are stunning.
Clearly, as more individuals are diagnosed with the illnesses commonly associated with the aging process, irrespective of whether it impacts one mentally and/or physically, it is inevitable that the cost of care on the Medicare and Medicaid programs will dramatically increase. As these costs increase, it is also more likely that the financial eligibility requirements for a program such as Medicaid will become more restrictive.
Thus, as my Uncle Eddy likes to say, a person who is “maturing” ”” not “aging” ”” must take a proactive approach to planning for their future needs. This proactive approach often consists of a combination of the following actions:
Ӣ Executing a durable power of attorney with broad powers, including, but not limited to, broad gifting powers. This will allow oneӪs family to handle all financial affairs in the event one no longer has the capacity to do so;
Ӣ Executing an irrevocable trust and funding the trust with oneӪs home and a portion of oneӪs (non-IRA/retirement) liquid assets to shelter said assets from the cost of long term care;
Ӣ Considering the purchase of long-term care insurance;
Ӣ Executing advance directives such as a Health Care Proxy and HIPPA form wherein you can appoint those to make medical decisions for you and have access to your medical records if you are no longer able to do so; and
Ӣ Executing and funding a revocable living trust to allow continuity of management of ones assets in the event of incapacity. The revocable living trust will also help avoid probate upon your demise.
All too often we are lulled into believing that addressing our mortality and the infirmities and illnesses associated with aging is something that can be pushed to the back burner. It is imperative, though, the public be constantly educated and reminded of the benefits of advance planning. I strongly encourage all seniors to be proactive when it relates to planning for their long-term care.
Attorney Anthony J. Enea is the managing member of Enea, Scanlan & Sirignano LLP, with offices in White Plains and Somers. He is a past chairman of the New York State Bar Association”™s Elder Law Section. He can be reached at 914-948-1500 or A.Enea@esslawfirm.com.
