Reverse Mortgages: Know the Facts

Every time I see the television commercial regarding reverse mortgages I always think there is another side to the story. Please do not be impressed that a known actor actually knows anything about reverse mortgages. The actor is being paid for this commercial.

As an elder law attorney, I have seen situations where the reverse mortgage was not a great idea for the individual, couple or family. I always recommend speaking with someone who is familiar with reverse mortgages and elder law prior to taking this action.

New reverse mortgage rules came into effect on August 4, 2014. A summary of the new rules is:
• A couple can get a reverse mortgage even if only one of the spouses is 62 or older.
• If one spouse takes out a reverse mortgage and then dies, the survivor can continue living in the home without fear of foreclosure as long as she or he continues making the tax and insurance payments and keeps up the maintenance.
• The non-borrowing spouse must be married to the borrower at the time of the loan closing (and must remain married to the borrower for the duration of the borrower's lifetime).
• Spousal status must be disclosed at the time of the closing and the non-borrowing spouse must be named in the loan documents.
• The non-borrowing spouse must establish legal ownership (or another ongoing legal right to
remain in the home) within 90 days of the death of the last surviving borrower.
• The non-borrowing spouse must meet all of the obligations described in the loan documents. For more details, please see this National Reverse Mortgage Lenders Association summary of HUD Mortgagee Letter 2014-07.
• If the non-borrowing spouse fails to meet any of the requirements, the loan becomes due and payable. (However, the problem for existing non-borrowing spouses facing foreclosures and those expecting foreclosures when their spouses die remains unresolved because HUD is claiming it cannot alter existing legal contracts. There is a lawsuit that was filed February 27, 2014, Plunkett v. Donovan, that addresses this issue, but it is still pending.)
• Additionally, HUD issued guidance that surviving spouses who were left off a reverse mortgage may get up to two 60-day extensions delaying the foreclosure once the loan becomes due and payable -- one before a foreclosure is started and one during the prosecution of the foreclosure -- if deemed appropriate by the mortgage services based on certain criteria.
I thank you very much for reading my blogs. I want to provide you with information that may be very helpful to you in your “seasoned” years.

Glenda
glenda@aginggraciously.com

The New Power of Attorney Law and How It Affects You, Part 3 of 3

In my last two blogs, I have discussed Florida's relatively new Power of Attorney law and the important steps you must take to make sure you are protected.

Even though your older POA documents were grandfathered in by the new law, it is still important to update your Power of Attorney document.  Some financial institutions will be hesitant to work with the old law. To keep your financial institution satisfied that you have covered all of your bases, make sure that your Power of Attorney agent’s authority to conduct banking transactions is initialed or signed.  Bank tellers do look for initialed provisions and question those that are not.  This could lead to delays, which is something you want to avoid whenever possible when conducting financial affairs.

To summarize what you can do to make sure you are protected when dealing with a Power of Attorney:
1. Be aware of reasons for new law
2. Know that POAs are now more intricate and comprehensive
3. Know that it will take more time to get done.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.

The New Power of Attorney Law and How It Affects You, Part 2 of 3

In my last blog, I introduced you to Florida's still relatively new Power of Attorney Law. This week, I would like to cover a couple of the risks in Power of Attorney documents and how to avoid them.
Did you know that your agent is not obligated to fulfill all of the powers granted by you in the Power of Attorney document?  This can leave areas of your affairs unattended.

For example, if you grant agent banking and investment powers, but the agent only wants to handle banking, this could leave your investments unsupervised. The solution is to put a simple reference int he document that “my agent has authority to conduct banking transactions.”  That will allows agent to conduct all of the banking transactions typical for a Power of Attorney.  You can do the same with your investment strategy.

Also, if you have a Trust established, or will be doing so, you want to make sure that the authority of your agent to amend the Trust is specifically enumerated in your Power of Attorney document and that it is  signed or initialed by you.  If the trust document itself (a separate document) does not allow for amendment by your agent, you would need to update the trust document.

The above steps will give you peace of mind when designating someone you trust to handle your financial affairs through Florida's Power of Attorney law.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.

The New Power of Attorney Law and How It Affects You, Part 1 of 3

Just what is a Power of Attorney? It is a document that allows your designated agent to manage your medical, financial or property affairs.  This is necessary when you or loved one are unable to conduct certain affairs, if you have a complicated financial situation or if you are elderly or disabled.

A Power of Attorney can be misused. For example, Back in 2011 there was a news story about a 69-year-old Florida man being arrested and accused of buying himself a Lamborghini with money that belonged to a 97-year-old woman.  He was supposedly acting as her Power of Attorney!

It is because of cases like that, that motivated the Florida Legislature to pass a more strict Power of Attorney law that same year.  Although the new law would not prevent cases like the one above, it will make it easier to recover assets, since client’s rights and agent’s duties are more clearly defined.

Also, this year, the legislature passed a law giving law enforcement more tools to prosecute those who abuse our elderly.

The 2011 Power of Attorney Law:
1. Has more protections for consumers.
2. Financial institutions must accept POAs within a reasonable period and not waste time
3. Requires more procedures and time to complete POA document
4. Must be signed before two witnesses and notary

Make sure your attorney is familiar with the Power of Attorney law.  If not, there is a danger you could have an invalid document.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.

Resources for the Seasoned Population

Dr. Donna Jacboi and I spoke at the Florida Prosthodontics Study Group in Wyoming in 2013.  As part of our presentation, we established a resource sheet for entities relating to the “seasoned” population.   These resources are provided to you for your review. I believe these resources will be extremely helpful.

Centers for Medicare and Medicaid Services	cms.hhs.gov
VA resources	www.va.gov/geriatrics
Ranking of nursing homes and home health agencies	www.medicare.gov
Areas on Aging	www.n4a.org or www.eldercare.gov
Leading Age, not-for-profit senior housing/LTC	www.leadingage.org
Center to Advance Palliative Care	www.getpalliativecare.org
National Hospice and Palliative Care Organization	www.nhpco.org
AGC Foundation for Health in Aging	www.healthinaging.org
Villages support networks	www.vtvnetwork.org
National Association of Professional Geriatric Care Managers	www.caremanager.org
Ethical Wills	www.ethicalwill.com www.helpguide.org
Five Wishes Advanced Directive	www.agingwithdignity.org
Project Grace Advanced Directive	www.projectgrace.org
Universal home design	http://www.aarp.org/home-garden/livable-communities/info-07-2011/aarp-homefit-guide-aging   www.aarp.org/home-family/livable-commuities/info-06-2012/home-fit-guide- or 1859.html   www.aarp.org/home-garden/transportation/driver_safety
Alzheimer’s Disease Education and Referral Center	www.nia.nih.gov/alzheimers
Family Caregiver Alliance	www.caregiver.org
Tools for Reminiscing	www.BooksAsBridgesInc.com
The Pioneer Network (culture change in long term care)	www.pioneernetwork.net
Caregiving Resource Center	www.aarp.org/caregivers
Best Friends Approach (dementia care)	www.bestfriendsapproach.com
Carter, Jimmy, The Virtues of Aging, Random House, 1998
Dunn, Hank, Hard Choices for Loving People, A&A Publishers, Inc., 2001 (P O Box 1098 Herndon, VA 20172-1098,	www.hardchoices.com AAPublish@aol.com
Graham, Billy, Nearing Home:Life, Faith, and Finishing Well, Thomas Nelson, Inc., 2011
Job, Reuben, Living Fully, Dying Well,  Abingdon Press, 2006

 

A New Phase Means Proper Planning

As you may have read on my Facebook page, recently I applied for Medicare. This phase of my life is hard to believe.  I advise seniors and their families about age related issues in my law practice, but now it is my turn. I was in the emergency room recently and was described as a 64 year old elderly person. What a shock! I chuckle.

My turn for what?

I am at a new phase in my life with different twists and turns. I am more concerned than ever that I have my proper planning documents. What about my Durable Power of Attorney as to assets and my
health/health care surrogate, living will, HIPAA, disposition of bodily remains?

I know that my time units are much less now, so my preparation must be more intense.

This thought process, what I am going through now, is a blessing in disguise.  It helps me to identify even more with those of you who have visited my office for assistance, and those who will do so in the future.

Elder Law Guidance

I have been a member of the Florida Bar since 1980. My friends, that is a very long time. When I moved to Marianna after law school, I thought the number of years I would be practicing would be at least 45 years. Now, when I look at my years of future practice, they are less than ten. Time has flown. I enjoy being a lawyer. I enjoy working with people who are in stressful situations and developing strategies to assist them.

Why elder law?  It is an awesome practice. I am developing relationships with family members and there is a sense of closeness.

Elder law is unique, with exposure to Medicare, Social Security, Medicaid, drug plans, managed care plans, etc. As we grow older, we encounter so many issues which require a solid foundation of knowledge. It is the knowledge which is the key in assisting.

As we grow older, our issues become overwhelming and  the proper guidance can be very helpful.