Critter Corner: Lawmakers Introduce Bill to Provide Tax Credit for Caregiving Expenses

Dear Baxter,

I read something about a Bill that was just introduced to provide tax credit for caregiving. I am a part-time caregiver for my father and work 20 hours a week at my job. Iwould be interested in learning more about this, if you can provide any details.

Thanks!

Bill Foruss

—-

Dear Bill,​

Yes, you are correct. A pair of lawmakers (Rep. Linda Sánchez, D-Calif. and Rep. Tom Reed, R-N.Y.), who are on the tax-writing House Ways and Means Committee, recently introduced bipartisan legislation to provide a tax credit for caregiving expenses.

The Credit for Caring Act (H.R. 4708) provides a tax credit to working family members equal to 30 percent of a caregiver’s expenses greater than $2,000. The bill aims to reward working taxpayers and encourage continued participation in the workforce while providing care to a loved one.

“This is more than just another tax credit,” Sánchez said in a statement Monday. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities. This legislation will help alleviate some the burden on family caregivers by providing a tax credit for services such as home care and adult day care. I am proud to work with Rep. Tom Reed to find a bipartisan solution to help families across this country care for their loved ones.”

To be eligible:

• Caregivers would need to earn at least $7,500 of earned income (approximately halftime at minimum wage) to be eligible for the credit. The amount of the credit would be capped at $3,000 and phase out for married taxpayers with incomes over $150,000 ($75,000 for single or taxpayers filing separately).

• Caregivers would need to be caring for a family member who is the taxpayer’s spouse, parent, grandparent, sibling, child, niece or nephew, brother or sister-in-law, father, or mother-in-law.

• The family member would need to be certified by a health care professional as requiring long-term care needs for at least six months and unable to perform at least two activities of daily living (dressing, eating, bathing, walking, going to the bathroom, and grooming/personal hygiene).

• Eligible expenses would include goods, services and support purchased by the caregiver to assist with activities of daily living.  They could include purchases made on behalf of the care recipient for groceries, incontinence supplies, a remote health monitoring device, modifications to a home, transportation to a doctor’s office, hiring someone to look after an elderly parent, or for other related purposes.

We will provide more details about the Credit for Caring Act as they become available.

Thanks for your question!

Baxte

New, Overlooked, and Odd Tax Deductions for Seniors

New, Overlooked, and Odd Tax Deductions for Seniors

Q. With tax season upon us, I am preparing for the … [Read More…]

Enough is Enough! I Quit.

Every day, Rebecca goes to her mother’s house in Oakton, gets her out of bed, gives her breakfast, and dresses her. She spends the day with her, as she is working from her mother’s home. Sometimes, when Rebecca arrives, her mother will greet her with, “Oh, it’s you again.” And, throughout the day, she complains about everything, tells Rebecca to stop eating so much, and expects to be waited on hand and foot. Rebecca is struggling to get her work done and to maintain her sanity. Rebecca moved her mother, now 83, in with her and her family briefly after her dementia was beginning to get worse two years ago, but it didn’t work out. This new arrangement also isn’t working.

Recently, Rebecca found her mother on the kitchen floor, and Rebecca hurt her back trying to pick up her mom. Being injured (and depressed about the situation), Rebecca realized that she could no longer do as much for her mother as she did before. Rebecca tried hiring numerous home health aides, but her mother didn’t like any of them and kept firing them.

Rebecca explained to her siblings that she is at the breaking point and that she thinks a nursing home where their mother would get full-time care would be best. Unfortunately, her siblings, who don’t live nearby, disagree. Rebecca loves her mother and respects her siblings’ opinions, but realizes that she needs to take action quick. What can she do in this difficult situation?

Most of us, when we have a vulnerable loved one, want to take care of them, but in many cases, we can only do so much. Below are some options for people in similar situations to help them maintain their sanity, while ensuring their loved one has the best care:

• Admit that the situation needs to change: It’s okay to admit to yourself and others that when you’ve had enough, you’ve had enough. No one who is burned out is able to do his or her best to care for another person. Don’t let this happen to you. The idea is that you’ve done all you can to keep your elders safe and to help them through some tough times. However, if times have gotten tougher than you expected, and you must look for other options, it’s okay to admit that something has got to change.  We have had numerous clients who have had nervous breakdowns and suffered episodes of severe and debilitating depression because of the overwhelming stress of caregiving.  Don’t let that happen to you.

• Reframe the situation: According to geropsychologist Sara Honn Qualls, director of the Gerontology Center at the University of Colorado, Colorado Springs, “Rather than an either/or decision, I encourage adult children to think of it as, ‘I’ve been providing care in one way, and now I need to provide it in another way.’”

• Discuss Options with Family: Your decision to not be the caregiver, or to be a different kind of caregiver, will impact others, including your loved one, your immediate family, and your siblings. As in our example, they may disagree or resent your decision. When you explain that you can’t keep up caregiving as it has been, it’s best to let siblings know that you are not telling them what to do, but sharing your thoughts. It’s helpful to consider options before the family get-together. Also, seek ideas from them. If the discussion gets contentious, rather than argue, tell family members you have done the best you can. If there’s pushback, stay calm. You might say, “Maybe I could have done this or that but I have truly reached the end of the line and I can’t do it anymore.” If it’s realistic, tell them they are welcome to take over.

For some families, it makes sense to find a neutral third party with clinical training to run, or at least attend, the meeting. That might be a geriatric care manager (now called “aging life care experts”), an elder mediator, or a family therapist. Please see our list of trusted referrals for recommendations.

• Identify key people (friends, family or professionals) who can support and guide you through this change process. A support group is a good place to express anger, anxiety, frustration and sadness about the caregiving experience. Many of the participants in similar situations can also help provide ideas, based on their experiences, for how to talk to siblings, find a good nursing home, etc.

•Assume as upbeat an attitude as you can, and start looking at other options. Treat it as an adventure, even if your elders are complaining. Do your best to detach from their complaining and look anyway. Try to be cheerful but firm about any help you seek.

Taking Care of Yourself

Your own health can suffer when you are struggling with caring for yourself, and caring for a loved one. Therefore, you need to put self-care — such as exercising or meditation — on your list and treat it like any other important appointment.  If you don’t know how to meditate, please click here for an excellent free e-book that will quickly explain the benefits of meditation, and quickly teach you with several different meditation techniques.

If you are coming to the end of your rope with caregiving, you need to get help. Guilt isn’t an option. Think of this as giving more care, not about you caring less. Do it for your family and do it for yourself.

Medicaid Asset Protection

Nursing homes in the Metro DC area cost $10,000-$14,000 a month, which can be catastrophic for most families. Do you have a loved one who is in a nursing home or nearing the need for nursing home care? Or are you simply looking to plan ahead in the event nursing home care is needed in the future?  Life Care Planning and Medicaid Asset Protection is the process of protecting your assets from having to be spent down in connection with entry into a nursing home, while also helping ensure that you or your loved one get the best possible care and maintain the highest possible quality of life, whether at home, in an assisted living facility, or in a nursing home. Please call us to make an appointment for a no-cost initial consultation.

Fairfax Elder Law: 703-691-1888
Fredericksburg Elder Law: 540-479-1435
Rockville Elder Law: 301-519-8041
DC Elder Law: 202-587-2797

Critter Corner: Should I Prepay for My Funeral?

I’m Not Dead Yet!

Q. When my Aunt Barbara died in 2002, my cousins … [Read More…]

I’m Not Dead Yet!

Q. When my Aunt Barbara died in 2002, my cousins had to rely on the legal system to help negotiate with their half-brother over her estate. To sell her personal possessions, the family had a large auction. They all agreed to keep a few things, but it was the real estate that caused a serious family squabble.

The case was settled five years later, with an agreement to allow the half-brother to purchase the real estate at a fair-market price. But everyone was left with battle scars and some hurt feelings. Sadly, their relationship was destroyed in the process.

I am concerned that the same could happen with my family. I own a home in Northern Virginia that has appreciated quite a bit and an ocean-front vacation home in Virginia Beach. The last few times the family got together, I overheard my adult children fighting over my property! I’m not dead yet. In fact, I’m in pretty good health. Sometimes, I worry what will happen when my time comes. I would hate for the kids to be at war with one another, and I don’t understand why this is even happening (they always got along so well!) How can I help prevent it, while I’m still able to do so?

A.  Many adult children and grandchildren have had experiences with their families being torn apart by an inheritance battle.

Family disputes over inheritances rarely come out of nowhere. The root of many of these disputes can be jealousy, greed, thirst for control, bitterness, hatred, and hurt feelings resulting from real or perceived preferential treatment by a parent. It is especially important to anticipate conflict and, when you do, in most cases, it can be avoided.

Minimizing the risk of an inheritance war requires several actions that combine psychology, a lot of self-awareness, a good dose of common sense (and of course, an experienced estate planning attorney!) The following are 10 things you can do to minimize inheritance conflict:

1. Talk to your adult children about your estate wishes, and about any changes to them as you age. Having conversations about who’ll get what and why can eliminate surprises later and give your children a chance to process your intentions. If you think it’s appropriate to give more to the grown child who will likely be caring for you in your later years, make that wish known to all of your children, not just the caregiving child. There’s no easy way to broach the topic. It’s often best to start by saying that you’d really like to talk about a difficult subject because you believe it’s in the best interest of the family. Of course, you must also document your wishes in your estate planning documents.

2. Get input from your children. Ask if any items you own hold special meaning to them. Something as simple as a clock from your grandfather may be of much more interest to one of your children than you anticipated. It is better to have the issues surface now while everyone is still available to explain their rationale. When you decide how to distribute items of interest, it is a wise idea to include a detailed list of cherished personal property with instructions as to who should inherit each item as part of your estate planning. We always provide our clients a way to do this through what is called a Tangible Personal Property Directive. This directive can be changed by you at any time without having to change your underlying trust or will.

3. Be fair: That Barbie doll collection of yours may be worth a great deal. If possible, try to get an appraisal for anything that might have significant economic value. Being fair can also mean making sure each of your children receives a collection of items from your estate of similar monetary value, not just sentimental value.

4. Hold an open discussion on special assets:There are situations where family input is advisable. For instance, issues such as care for a handicapped child, succession of a family business, or continued enjoyment of a vacation home require parents and children to be on the same page. Read more about special assets in our blog post, “Please Don’t Leave That to Me!”

5. Clearly identify gifts and loans: Parents often help adult children who are experiencing financial distress. It is the parent’s decision to structure these amounts as either loans, gifts, or “advancements” (an advancement means that the amount given will be deducted from that child’s share of the overall inheritance before the remainder of the inheritance is divided among the children). Unpaid loans from mom and dad can be a major source of conflict, sparking jealousies about who got more. Parents should resolve uncertainty regarding lifetime financial assistance by clearly addressing them in their estate plan.

7. Leave to children equally and disinherit only as a matter of last resort: Treat children equally. Unequal allocation can be seen as a showing of favoritism that will re-activate old sibling rivalries and hurt feelings. Children have unequal needs growing up. Some will naturally receive more based on special skills (travel sports, private schools, piano lessons), or special needs (braces, glasses, special shoes, therapy sessions). However, the past is the past; don’t be tempted to leave unequally at death to account for early inequities. Also, to avoid fighting, don’t penalize successful children by leaving more to their needy siblings, or conversely, reward successful children because they are favored. Exceptions to this general rule are the truly disabled and those who would use their inheritance to further an unhealthy lifestyle of addiction or sloth. Finally, be absolutely certain before you decide to disinherit a child, as it leaves a lasting legacy of hurt and rejection.

8. Be detailed about your plans: Taking the approach that “my children will figure all this out” without your providing detailed instructions in your Estate Plan might not lead to a harmonious distribution of your assets. While your children may not be satisfied with the choices you’ve made, they will be less likely to blame their siblings because they’ll know the allocations were what you wanted.

9. Update Your Estate Plan regularly: Make estate planning changes when there has been a change of circumstances, especially after a divorce. Additionally, estate planning should be reviewed after other life changes, such as the death or divorce of a child or the illness, addiction, or incapacitation of any beneficiary.

10. Include a letter to your children: This letter is not to say who gets what; that should be outlined in your legal documents. This letter is to tell your children you loved them and tried your best to be fair in the Estate Planning  process. It can go a long way in reminding them to move past the fact that they didn’t get the clock they wanted from your estate. Remind them in this letter that family goes a lot deeper than possessions and that you hope they will remember that fact.

Inheritance disputes can be explained and predicted and are to a large degree preventable. By carefully and thoughtfully planning your estate, you can protect your most important legacy — your family!

Estate Planning is Important for ALL Families

We here at The Law Firm of Evan H. Farr, P.C. have strategies in place to help all types of families plan for themselves and their loved ones. With advance planning, each person, regardless of their family situation, can retain the income and assets it has taken a lifetime to accumulate and the peace of mind that their child(ren)’s needs will be adequately and properly addressed. If you or members of your family have not done your Estate Planning, or not had it reviewed and updated in the last five years,  please contact us as soon as possible to make an appointment for a no-cost consultation:

On Pins and Needles: Caring for Those with Mental Illness

As many as 8.4 million Americans are providing care to an adult with an emotional or mental health issue. Often, these family caregivers feel the impact of the disease as they struggle to care for their loved ones and to bridge health care systems, mental health providers, and community supports.

The National Alliance for Caregiving (NAC), in partnership with Mental Health America (MHA) and the National Alliance on Mental Illness (NAMI), recently released a new study on the obstacles and opportunities facing caregivers of adults with mental illness. The study, On Pins Needles: Caregivers of Adults with Mental Illness, provides new data based on a study of 1,601 family caregivers of persons with moderate-to-severe mental illness, including those caring for a loved one affected by bipolar disorder, schizophrenia, major depression or another mental illness. Data was collected through an online survey instrument in September 2015.

Last week, NAC, MHA, and NAMI convened members of Congress, policy makers, family caregiving advocates, mental health professionals, and others for the release of the research study. The following were some of the findings from the report that were presented at the meeting:

• Caregivers of those with mental illness have typically provided care for an average of 8.7 years, in contrast to caregivers of an adult for any condition or illness who typically provide care for 4 years on average.
• The majority of people receiving care (58%) are between the ages of 18-39 and it is often a parent taking on care of the adult child (45%).
• The main conditions requiring care are bipolar disorder (25%), schizophrenia (25%), depression (22%), and anxiety (11%).
• A majority of caregivers (55%) reported that they were included less than they felt they should have been in care conversations with their loved one’s providers.
• Caregivers indicated that the most helpful policies or programs would be mental health service coverage parity (31%), care navigator (30%), and caregiver education (15%).
• About half of mental health caregivers reported that their loved one was sent home “too early or too quickly” from the emergency room, hospital, or other facility after a mental health crisis situation (49%).
• Nearly half (49%) of caregivers said that their loved one is financially dependent on family and friends.
• Nearly half (48%) of caregivers said it was difficult to talk with others about their loved one’s mental or emotional health issues.
• Four in 10 caregivers struggled to find an accurate diagnosis for their loved one.
• Families whose loved one had found an accurate diagnosis reported that it took 11.8 years, on average, to get there.
• Treatment is also an issue. A majority of caregivers found that it was difficult to find the right drug and dose, and fewer than four in ten caregivers (37%) reported that their loved one’s medication was effective in providing the help they need.
• Caregivers noted several barriers to accessing health care services and long-term services and supports, including day programs, peer support, case managers, in-patient treatment centers, and low availability of services in rural areas.

In addition to identifying common challenges facing caregivers of people with mental illness, the study offered a number of solutions to help families struggling with mental illness. Providing greater access to high-quality healthcare services and assistance with care coordination are two of the suggestions offered. In addition, the report suggested that healthcare providers examine ways to include caregivers as part of the care team, improve access and reimbursement for medications, and provide education, the authors suggest.

“We often forget that caregivers themselves are enduring trauma, anxiety, and depression as they work on behalf of a loved one,” explains Paul Gionfriddo, President and Chief Executive Officer of Mental Health America, a partner on the study. “Surveys like this help us to focus not only on the inadequacies in our system of services and supports for people with mental health conditions, but also on the inadequacies of the support we give to those who care for them.”

Resources for Caregivers of Loved Ones with Mental Illnesses

Family caregivers for adults with mental illness face remarkable challenges providing appropriate support for their loved ones. Family members often feel responsible, or may be held responsible by legal and social service systems. The burden of care can be substantial, and often lasts a lifetime for committed family members, including parents of adults with mental illness, spouses, partners, siblings and, with later onset disorders, children. Here are some resources:

• A summary of interventions available to assist caregivers for adults with mental illness and other family members has been developed by the Family Institute for Education, Practice and Research
• Education, training, and support services are available through the National Alliance on Mental Illness (NAMI).
• A website for children in a household with a mentally ill member from the Mental Health Association of Southeastern Pennsylvania.
• The University of Illinois at Chicago offers the Journey of (JOH) Family Education Course.
• Caregivers and Mental Illness: Living with Schizophrenia (World Federation for Mental Health, 2014) considers caring for those with severe mental illness across the lifespan, including a section on caregivers of older adults.

Special Needs Planning

A special needs trust is often an essential tool to protect a disabled individual’s financial future. Also known as Supplemental Needs Trusts, this type of trust preserves legal eligibility for federal and state benefits by keeping assets out of the disabled person’s name while still allowing those assets to be used to benefit the person with special needs. Read more here.

When it comes to special needs planning and guardianship, we can guide families through this process and discuss the best strategies/alternatives. Please call us to make an appointment for a no-cost consultation:

Fairfax Special Needs Planning: 703-691-1888
Fredericksburg Special Needs Planning: 540-479-1435
Rockville Special Needs Planning: 301-519-8041
DC Special Needs Planning: 202-587-2797