November 2024


From The Certified Elder Law Attorney's Desk:





END of YEAR PLANNING CHECKLIST








William W. "Bill" Erhart


Blog Spotlight:



ALERT: Delaware’s New Uniform Health-Care Decisions Act:




By: Catherine Read


November 21, 2024




Calendar of Events



Article of Interest:




Aging Gracefully Can Be Scary, But Psychologists Reveal How To Shift Your Narrative




When you've been conditioned to believe that gray hair and wrinkles decrease your value in society, how do you adjust your perception? Experts weigh in



.

By: Vanessa Nirode



Sep 28, 2024,









Quote





From The Certified Elder Law

Attorney's Desk:


William W. “Bill” Erhart







END of YEAR PLANNING CHECKLIST

We are in November and before we enter the holiday season there are several items we need to check off our naughty or good list for ourselves.


First, for those of us on Medicare it is Open Season on selecting our health supplement plans and drug plans. Medicare Open Enrollment ends on December 7. This is the opportunity to select Medicare Supplemental plans and Prescription Drug Plans for the next year. It is also the opportunity to select Medicare Part C Plan, also known as Medicare Advantage Plan.


Medicare can be complex. The Medicare.gov website can help lead you through some of the choices available to you. It is not very difficult to use.


Medicare Advantage is a cheap way to access broader health coverage than traditional Medicare. Many Medicare Advantage Plans cover dental, eye care and hearing aids, which traditional Medicare does not.


Medicare Advantage Plans have some serious disadvantages. These plans are not available in all geographic areas. The retired athletes and movie stars hawking them on television are always smiling while asking you to call and give your zip code to see if you are eligible for Medicare Advantage. That is because Medicare Advantage limits healthcare to the local network it contacts in a particular area.


If a participant wants or needs to go to a specialist outside the network, then you pay for it yourself. If you vacation in Florida or have to move from one area to another for any reason, again, too bad. You are out of the network. We have had numerous adult children come to us for help because

an elderly parent got ill and had to move to Delaware. Because the parents were enrolled in Medicare Advantage there was no health coverage.


In my opinion, Medicare Advantage is almost always cheaper, but risky because the networks are so limited. We never recommend it.


With traditional Medicare, one has to select or decide to keep the Supplemental coverage, sometimes called Medigap coverage. This coverage picks up where Medicare leaves off. There are ten different Medigap plans.


Each plan’s offer is regulated by Medicare. It can be difficult to change from one plan to another. In Delaware, there are at least 39 insurance companies that offer Medigap insurance.

There is a lot to consideration. Some plans cover rehabilitation in nursing homes. Some provide health coverage if you are traveling overseas. For help go to https://insurance.delaware.gov/divisions/dmab/ or you can call 1-800-336-9500 or (302) 674-7364 to set up an appointment with a trained volunteer from the State of Delaware.


Medigap Plan G (G for good) is probably the best one. It is the most expensive one. Of the 39 insurers you likely can find one you can afford.


The Part D drug plans are complex if you need certain drugs. Each Part D plan provides coverage for many, but not all drugs. Medicare.gov can lead you through the choices. You need to have a list of drugs you use with the dosages to select the right plan for you. The process is tedious but necessary. The direct link is: https://www.medicare.gov/plan-compare/#/extra-help?year=2025&lang=en


The next item on your check list should be considering Required Minimum Distributions (“RMD”) from your IRA or 401K plan or the equivalent.


You will need your CPA or financial advisor to work through some of these issues but waiting until your Required Beginning Date (“RBD”) and then simply taking the RMDs may not be the best strategy for you. The current RMD is age 73.


Some of us are in the sweet spot. That is the time of one’s life when one is retired, but less than 73 years old, which is the age most people will have to start taking RMDs from their plans. Their tax bracket may allow them to convert some of their traditional IRAs/401Ks into tax-free Roth IRAs.


Converting from a traditional plan to a Roth will require some tax to be paid, but it is often less than what will have to be paid when it is withdrawn as a taxable RMD years in the future. For the Roth IRA owner, those Roth funds will not have to be withdrawn at all. They can accumulate your entire lifetime tax free.


There are many variants to this strategy. Some involve complex

calculations. But CPAs and advisors have the tools to perform the calculations and create illustrations to demonstrate that taking distributions from IRAs/401Ks early can be more tax efficient than waiting until age 73 and simply withdrawing the minimum.


If you are interested in seeing some of those illustrations, I can arrange to review them in an evening presentation. If there are enough interested clients, we can have a meeting in our multi-Purpose Room. Call my office and we will see what we can arrange before the end of the year.


ALERT: Delaware’s New Uniform Health-Care Decisions Act:


Thursday, November 21st, 2024

by Catherine Read




First Major Overhaul to Delaware Health Care Statutes in 30 Years


The first major overhaul to Delaware’s Health Care statutes was signed by the Governor on September 30, 2024, to go into effect in one year on September 30, 2025.

The law is a complete replacement to all of Title 16 Chapter 25, which is Delaware’s current Health Care Decisions Act, and modifies other health care provisions in the Code.


SB 309 was introduced in May 2024, amended in June 2024, passed the House and Senate in June 2024, and was signed by the Governor recently on September 30, 2024.


The new statute follows national precedent. A Uniform Health-Care Decisions Act was recently adopted by the Uniform Law Commission and is being enacted around the country.


“Uniform” in this context does not mean exactly the same. States may change or skip parts of the Uniform act in adoption.


Delaware’s current Health Care Decisions Act was enacted almost 30 years ago in 1996 and was modeled on the uniform act of 1993.


You are almost certain to see changes in health care documents and practices once the health care industry digests and incorporates the new law.


We are following this closely.


In December 2024 I will be presenting on the new Health-Care Decisions Act to estate planning attorneys and financial professionals and will share some of my research with you in future blogs.


In the meantime, we wanted to get out the word that the bill has become law.

The synopsis of the bill provides (broken into paragraphs for this Blog for easier reading):


“This Act adopts the Uniform Health-Care Decisions Act of 2023 (UHCDA 2023) to supersede the Uniform Health-Care Decisions Act of 1993, which Delaware enacted in 1996. The UHCDA 2023 was authored by the Uniform Law Commission (ULC) and was developed in a multiyear collaborative and non-partisan process to modernize and expand on the 1993 version of the act. The UHCDA 2023 maintains processes to address how health-care decisions can be made by or on behalf of individuals who lack capacity, including: (1) Allowing individuals to appoint agents to make health-care decisions for them should they become unable to make those decisions for themselves. (2) Allowing individuals to provide their health-care professionals and agents with instructions about their values and priorities regarding their health care and to indicate medical treatment they do or do not wish to receive. (3) Authorizing certain people to make health-care decisions for individuals incapable of making their own decisions, but who have not appointed agents. (4) Setting forth agent, default surrogate, and health-care professional rights and duties.


The UHCDA 2023 reflects substantial changes in how health care is delivered, increases in non-traditional familial relationships and living arrangements, the proliferation of the use of electronic documents, the growing use of separate advance directives exclusively for mental health care, and other recent developments.

Some updates to the Act include:


(1) Removal of administrative barriers that make the creation of an advance health-care directive more difficult.

(2) Addition of provisions to guide determinations of incapacity, which is important because an agent’s or default surrogate’s (surrogate’s) authority to make health-care decisions for a patient typically commences when the patient lacks capacity to make decisions. The Act modernizes the definition of capacity so that it accounts for the functional abilities of an individual and clarifies that the individual may lack capacity to make one decision but retains capacity to make other decisions.

(3) Authorizing the use of advance directives exclusively for mental health care.

(4) Modernizing default surrogate provisions that allow family members and certain other people close to a patient to make decisions in the event the patient lacks capacity and has not appointed a health-care agent. The new default surrogate provisions update the priority list in the 1993 Act to reflect a broader array of relationships and family structures. They also provide additional options to address disagreements among default surrogates who have equal priority.

(5) Clarifying the duties and powers of surrogates. For example, to reduce the likelihood that an individual’s health-care needs will go unmet due to financial barriers, the Act authorizes a surrogate to apply for health insurance for a patient who does not have another fiduciary authorized to do so.

(6) Modernizing the optional model form to be readily understandable and accessible to diverse populations. The form gives individuals the opportunity to readily share information about their values and goals for medical care. Thus, it addresses a common concern raised by health-care professionals in the context of advance planning: that instructions included in advance directives often focus exclusively on preferences for particular treatments, and do not provide health-care professionals or surrogates with the type of information about patients’ goals and values that could be used to make value-congruent decisions when novel or unexpected situations arise. The form addresses these concerns by providing options for individuals to indicate goals and values, in addition to specific treatment preferences.


This Act also adopts some of the optional provisions suggested by the ULC, including that an agent or surrogate has limited ability to consent to the long-term placement of an individual in a nursing home without express authorization. Specifically, without express authorization, the agent or surrogate may not consent to the placement for more than 100 days over the individual’s contemporaneous objection unless (1) no alternative living arrangement is reasonably feasible or (2) the individual is terminally ill. The ULC suggested 100 days in recognition that the federal Medicare program covers up to 100 days of nursing home care for qualified beneficiaries.


This Act does not authorize mercy killing, assisted suicide, or euthanasia.


In addition to style changes throughout, this Act makes some modifications to the UHCDA 2023 that are consistent with Act and should not disrupt uniform interpretation.

These modifications include:


(1) Revising language to conform to Delaware court practices.

(2) Providing surrogates with the authority to file insurance or benefit claims on behalf of the individual and to appeal such outcomes, in addition to the UHCDA 2023 allowance for a surrogate to apply for insurance or benefits on behalf of the individual. As under the UHCDA 2023, a surrogate does not have the duty to perform these actions and may only do so if no other fiduciary is authorized to do so.

(3) Creating an additional disqualification that disallows a potential surrogate from serving if the individual has a pending Protection From Abuse petition against the potential surrogate, the individual has a Protection From Abuse order against the potential surrogate, or the potential surrogate is the subject of a civil or criminal order prohibiting or limiting contact with the individual.

Section 2 of this Act adds a new Chapter 25B to the Delaware Code. Chapter 25B will contain Delaware-specific supplements to the UHCDA 2023. These Delaware-specific additions are being placed within their own chapter to promote uniform interpretation of the UHCDA 2023.


Chapter 25B includes § 2502B, which relates to health-care institution authorization to petition for guardianship for an individual to whom the institution is providing care. Section 2502B reinforces the work of the Non-Acute Medical Guardianship Task Force, created by Senate Concurrent Resolution No. 30 by the 150th General Assembly. That task force’s work resulted in the current § 2519 of Title 16, which offers a process and timeline whereby health-care institutions can take steps to help obtain a guardianship for patients who no longer require acute care and can be transferred to another type of health-care setting. While § 2502B retains the ability for a health-care institution to address the discharge of long-term stay patients without an authorized decisionmaker, it modifies the powers in the current § 2519 by doing all of the following: (1) Allowing health-care institutions to petition of the appointment of a guardian in instances beyond where an individual no longer needs acute care. (2) Reiterating that the health-care institution may only petition if they believe there is no less restrictive alternative that will meet the individual’s needs. (3) Streamlining notice requirements and changing who must receive these notices so that a health-care institution does not send a notice if there is a reasonably available surrogate. If there is a reasonably available surrogate and there is a dispute between the surrogate and the health-care institution about the treatment or level of care needed by an individual, then the parties should seek judicial relief under § 2526 of the UHCDA 2023 as opposed to using the guardianship process.

The new Chapter 25B also contains a provision to encourage public awareness and use of advance mental health-care directives.


Sections 3 through 11 of this Act update the Delaware Code in light of the adoption of the UHCDA 2023 by updating internal citations, updating terms to match the terms used in the UHCDA 2023, and ensuring a consistent list of default surrogate decisionmakers.


This Act is effective immediately and is to be implemented 1 year from the date of enactment.

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Aging Gracefully Can Be Scary, But Psychologists Reveal How To Shift Your Narrative

When you've bee

By Vanessa Nirode

Sep 28, 2024,

When you've been conditioned to believe that gray hair and wrinkles decrease your value in society, how do you adjust your perception? Experts weigh in.



The image I see of myself in my mind is that of a photograph taken in 1992, when I was 22 years old. The photo is of me and my friend, Sean. I’d gone with him to have his professional headshots taken (he’s an actor and songwriter) and the photographer offered to snap a few of the two of us. The frame is a close-up shot of both of our faces. I am sitting on his lap, my arm around his neck, my eyes fixed on something past the camera. Sean stares directly into the lens with all the confidence and defiance of youth. We are both so very, very young.

While I know, as a relatively intelligent, mostly adjusted, grown woman, that I no longer look like the person in that photo, what I see in the mirror these days always takes me a bit by surprise. It is my mother’s face that stares back at me, a face that sparks both distress and grief. When and how did I start to look so old?


“There’s a certain amount of sadness, grief when we look at our faces [as we get older] — I should mention I’m 73,” Naomi Woodspring, an author and gerontologist, told me. “Yet notions, ideas about what we see in the mirror are seen through the lens of our current age.”

And these ideas change as we change.


Intellectually, I know I cannot magically remove all the effects of aging from my skin and body, no matter what advertisers and (often) the media want me to believe. I also know there must be some way to let go of my inner psychological equation that youth equals beauty and that, without it, I am no longer attractive. I’m not sure, though, how to go about changing my outdated definitions of these things.


I talked with three psychologists and researchers about ways to alter the narrative running through my head, the one that prattles on about how I look old and how unattractive the wrinkles and sags in my face are.


How psychologists approach aging


“First, you have to make a decision to accept yourself and accept aging. Think about what prevents you from doing that. You may think, ‘I’m not attractive, I’m invisible.’ But what, really, does this keep you from doing?” asked Ann Kearney-Cooke, an author, lecturer and director at the Cincinnati Psychotherapy Institute.

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