The Gray Divorce Revolution

It used to be unusual for long-term marriages to end in divorce.  They are now a growing trend known as Gray Divorcés.  Divorces for people between the ages of 50 to 59 have increased by 40% in the last few years.  Some statistics indicate that 25% of marriages lasting over 20 years now end in divorce.

What issues confront people in gray divorces?  By the time people are in their 50’s and 60’s, they are empty nesters and one or both may be retired.  They may be experiencing health issues.  Or they could own a business or assets that cannot easily be divided in half.  Often they have acquired retirement accounts, a house, investments, perhaps vacation homes and may need the services of a tax specialist to figure out the tax consequences of dividing the assets.  They need to have their legal documents and estate plans reviewed since their documents most likely provided for their spouses to inherit from them.  They often need to redraft their legal documents specifying who will make financial decisions for them in a power of attorney, health care decisons for them in a health care power of attorney, who will serve as executor of their will, and living will decisions at end of life.

The question of medical benefits and coverage for each person must also be addressed.  As each individual turns 65, they become eligible for Medicare. At that point, they need to have coverage for what Medicare does not provide through a supplemental health insurance carrier.  If the wife, for example,  has not yet turned 65 and  qualified for Medicare, then she might have to find a private plan of health insurance to cover her until she reaches 65.

These gray divorcés, as they age, will often face care issues alone, since their spouses will not be there to support them as they encounter medical issues.

However, friends and children and in some cases, companions, can be there to form a network of support.

DON’T LET THE NURSING HOME FILE YOUR MEDICAID APPLICATION

A few days ago I spoke with Elaine and reviewed her situation. She was married to
Ed who had cash assets worth over $125,000. Ed was in a nursing home and the nursing home was telling her to cash in the couple’s most prized possession–husband’s life insurance policy. Now that policy was worth only $23,000 but would pay Elaine $130,000 upon husband’s death. And the law is clear that Elaine can keep $113,640 of cash assets for herself which would include this policy. So why was the nursing home telling Elaine to cash in the life insurance?

The Medicaid rules are complicated and people who work in nursing homes are not necessarily trained nor do they understand the Medicaid laws. Therefore, nursing homes can be giving families the wrong advice that can cost families many thousands of dollars.

That’s what happened in Elaine’s case. Luckily, though, Elaine came to my office and I
advised her to keep the insurance policy, which the law allows her to do in this case. Fortunately for Elaine, she will have this policy to provide for her after her husband is gone. And I should mention that this policy was their biggest asset.

Due to the complexity of the Medicaid rules and the fact that the law in this area changes frequently, it is important to be represented by an elder lawyer, such as myself, when planning for and applying for Medicaid benefits.

Contact NANCY BUSCH for all your Medicaid and ELDER LAW needs at 610-432-3337