If you are thinking about the future, you probably have a lot on your plate: How do I draft a will? What is a power of attorney? Why do I need to manage my assets? But, have you thought about nursing home care?

Probably not, because almost no one thinks they will have to live in a nursing home or that they will eventually need round-the-clock care. There is no debate that we all want to be independent and we all want to be able to take care of ourselves no matter what. However, despite our best efforts, it can be difficult to plan for emergency medical care or financial difficulty.

What do you do when you’ve promised your loved one that you’ll never place them in a home, but you’ve realized that you don’t have the skills to take care of them like a professional? It is a difficult decision for elders and families alike, so it is rare for anyone to even acknowledge that they will have to deal with these things.

Nonetheless, even though no one thinks they will even have to consider full-time care in a nursing home, but sometimes the unexpected happens and then you’re facing having to spend thousands of dollars a month while draining your savings and your children’s inheritance. These kinds of changes can be sudden, jarring, and scary.

Medicaid can help cover the costs of a nursing home if you have less than $2,000 in assets, but the reality is that most people funnel their life savings into monthly nursing home care until there is nothing left, and only then can Medicaid step in to help. Medicaid Estate Planning Attorneys have the specialized knowledge and training to avoid this outcome and help protect your future.

Medicaid Estate Planning can be a difficult field to navigate with complex laws and ever-changing policies, but with the help of an attorney, you do not have to make difficult decisions about long-term care by yourself. If you are already thinking about estate planning—the process of setting up legal protections for your money, assets, and property for yourself and the loved ones who will inherit from you—you also need to plan for long term care.

If you are not thinking about your future, you should start planning now. Medicaid Estate Planning attorneys can help you protect your money and property for yourself, your future, and your loved ones, while simultaneously helping you qualify for Medicaid financial assistance for nursing home care whenever you may need it.

August 21st was designated as Senior Citizen's Day by President Ronald Reagan in 1988. According to the U.S. Census Bureau, there were more than 54 million senior U.S. residents on July 1, 2019.

A day of celebration and recognizing the accomplishments of our more mature citizens. Take the day to show appreciation for all that they have done and have yet to do! 

Many people tend to overlook the real cost of a traffic ticket. Speeding or other traffic infractions are not always as simple as paying the fine. “Going with the flow of traffic” can lead to points on your driving record which can lead to higher insurance premiums for several years. Driving home from vacation and happen to miss that work zone sign? States have different point systems and can add points to your driving record for an out-of-state violation.

Many factors come into play with insurance premiums. Your driving record will not only affect your automobile insurance but life and health insurance as well.  Life insurers are worried about a high risk of auto fatalities.  According to eHealthinsurance.com some health insurers will deny coverage if you have had a DUI within the past 3-5 years. Insurance companies are less likely to penalize an individual with a clean driving record than someone with many citations, reckless driving or offenses where drugs or alcohol are involved.

How fast were you driving when you received the ticket? Speed is a major factor; rates will go up with the number of miles over the speed limit.

Under the age of 18? According to the Virginia DMV traffic offense convictions result in the following penalties:

• First conviction.  You must complete a driver safety clinic within 90 days or else DMV will suspend your driving privilege until you complete the course and pay a reinstatement fee.
• Second conviction.  The DMV will suspend your driving privilege for 90 days
• Third conviction.  The DMV will revoke your driving privilege for 1 year (or until you turn 18 years old, whichever is longer).

Consequences can be far more serious than paying a fine or taking a class. Reckless driving is considered a criminal charge and could be charged as a misdemeanor resulting in possible jail time.   Not only can these infractions stay on your Virginia driving record for 11 years but criminal charges can remain with you for a life time.   
We want our drivers to use more caution and drive more carefully. An article by U.S. News gives tips on how to reduce costs.

• Cooperate with law enforcement. Drivers who are polite and cooperate with the officer are far more likely to get a ticket reduced or dropped.
• Challenge the ticket. Especially if it’s a first infraction, it might be worth challenging the ticket or asking that the fine be reduced.
• Consider hiring a traffic lawyer. It is possible to get a ticket dropped but lawyers know what strategies work best. If you are out of state, it’s possible you may not even need to take time off to appear in court.
• Opt for traffic school. Some states allow you to sign up for traffic school to avoid point on your driving record for noncriminal moving violations. Although you pay for the cost of driver improvement course, it might be cheaper than paying a high insurance premium.
  

 
Drive safe bloggers!

When it comes to retirement, surveys of our aging population leave us with one resounding piece of advice:  Don’t underestimate how long you could live.  If you’re lucky enough to retire at age sixty-five, then it might not be unreasonable to expect that you could need to subside on your retirement savings for another thirty years.  A 2015 survey of octogenarians (people in their 80’s) by New York Life found that more than half of participants were not expecting to live as long as they had, leaving them wishing they had saved more money throughout their lives.

Americans are now living much longer lives than our grandparents did.  Our own longevity is increasing, while the longevity of Social Security is in doubt.  The 2015 Social Security Trustee’s annual report projected that the combined trust funds that help pay old age and disability benefits will run out by the year 2034.  That means the funds will dry up by the time today’s 48-year-olds reach full retirement age.

This projection doesn’t mean that retirement payments will stop completely in 2034.  It means that by that time, the funds won’t hold enough money to pay the retirement benefits fully; only about 75% of the benefits will be covered.  So what does that really mean for us?  It means that unless politicians act to adjust the current system, we may not be able to rely on Social Security getting us through our retirement years.  We like to think that Congress will act sooner rather than later to initiate a solution.  But for now, the current precarious position of Social Security forces us to think beyond “Plan A” and onto “Plans B, C and D.”
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Shockingly enough, over half of all American households nearing retirement age have absolutely no retirement savings.  So what provides most of the retirement income for about half of all seniors?  You guessed it:  Social Security.  If aging Americans can’t fully rely on Social Security to provide for us through retirement, then we need to think about financial planning, and the sooner the better.

More and more Americans do not have access to a retirement savings plan at their workplace.  While it’s clear that most of us are far more likely to save for retirement if we can do so out of our paychecks, there are still plenty of ways to save even if our employer doesn’t provide a 401(k) plan.  If you're planning for retirement, consider speaking with a financial adviser about funding an IRA or a Roth IRA.  An IRA, or an Individual Retirement Account, is a type of savings account geared toward retirement that offers a few tax advantages.  With traditional IRAs, you can defer paying income tax on up to $5,500 that you contribute.  Investors over age 50 can defer paying income tax on as much as $6,500.  You can defer to pay income tax while you invest your money in your IRA, but income tax will be due once you withdraw the money from the account.  A Roth IRA is slightly different, in that you do not get a tax deduction on your contributions, but you don’t pay any tax on the earnings and the withdrawals are tax-free when you’re ready to retire.

Another way to ensure you’re saving for retirement is to put aside your tax refunds every year.  Save them in an account promised for retirement.  In fact, by using IRS Form 8888, you can directly deposit your tax refund into a savings account, an investment account or an IRA.

If you have trouble saving your earnings, try setting up a direct deposit.  You can allocate a certain percentage of each of your paychecks to go into your retirement account.  That way, you can save passively and ensure your money is set aside in a safe place.  If you’re wondering how much you should set aside, most financial experts are now recommending saving 15% of your income for retirement.

If you are very close to retirement age already, consider delaying your Social Security benefit.  The older you are when you file for Social Security benefits, the greater your annual payment (up to age 70).
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Once you have your nest egg, no matter how big or how small that egg may be, the most important and urgent next step is to protect it.  Building your savings and failing to protect them is like storing your nest egg on the edge of a brick wall; Humpty Dumpty can fall at any time.  In our elder law practice we've witnessed this happen to many families.  Illness and injury send over half of all older adults into long-term care facilities.  Often, a person admitted into a long-term care facility, such as a nursing home, feels forced to spend down their savings and even sell their house to pay the bills.  With nursing homes costing well over $80,000 per year, it’s no wonder that most families find their savings drained within the first year.  Don’t let this happen to you.  With a little planning, you can protect your savings from the devastating costs of long-term care.  In fact, even if you or your loved one is already admitted into a nursing home, there are still steps you can take to protect whatever savings you have left.  We can help you protect your assets from the costs of long-term care and health crises.  Contact us for a free consultation.

So you’ve decided to buy a house.  That’s great!  Homeownership is a wonderful thing, but you may feel like you need to jump a few hurdles before you can cross the finish line.  Real estate closings can seem complicated, especially if you’re a first-time home buyer, so here’s a checklist of things you’ll need to bring to the big day:
 
1.     Your ID. 

Bring your driver’s license or other form of photo identification.  Some lenders even request a second form of ID such as a passport or a birth certificate.  Your lawyer will let you know what’s required.
 
2.     Funds.

You will need to provide cash for both the down payment and the closing costs.  Your closing attorney will give you the numbers- just be sure to bring a cashier’s check.
 
3.     Your Good Faith Estimate.

Your lender should have provided you a Good Faith Estimate of closing costs during the loan application process.  Make sure the final closing costs match up to what was originally quoted to you.
 
4.     Proof of insurance.

You will need to provide proof that you have established a homeowner’s insurance policy on the property.  Your lender may want to review your policy before closing on the home.
 
5.     Your signature... and your smile.

​Buying a home- from finding a lender to going through the ordeal of closing- can be a stressful experience.  This is the day you finally get the keys.  The house is yours.  Congratulations!
 
At Collins & Hepler, we’re proud of our long history of residential and commercial real estate closings.  In fact, our archive houses over 6,000 real estate files.  We bring experience and personalized service to your home buying process.  If you’re thinking of purchasing a property in Covington, Alleghany County, Bath County, Lexington, Rockbridge County or Buena Vista, contact us for a free consultation.

An LLC, or a Limited Liability Company, is fairly easy and affordable to form in the state of Virginia.  An LLC is a useful entity to form for many reasons.  If you’re starting a business, forming an LLC will offer you legal protection.  As a business owner, you would have limited liability for debts and obligations.  For example, if you own a dance studio and one of your students breaks a leg on a slippery floor, and they decide to sue for medical bill payments, that student would need to sue your business (your LLC) instead of suing you individually.  That way, your LLC would be financially responsible, instead of risking your own personal bank accounts.  Other advantages to forming an LLC include pass-through taxes, which means that you would not be required to file a separate corporate tax return, and enhanced credibility for your business.

The first step in forming an LLC is deciding on a name.  Your name must end with “Limited Liability Company,” or “LLC.”  For example, our fictional dance studio could be called “Dave’s Dance Studio, LLC.”  There are a few prohibited words, however.  You cannot choose a title that could be confused with a state agency, such as “Secret Service” or “IRS.”

Once you’ve decided on a name, you will need to do a name search to make sure it’s available.  The next step is registering your LLC with the State Corporation Commission.  You can do this online or by mail.  Upon registration, you will need to select a Registered Agent for your LLC.  The registered agent can be a person or a business who is responsible for dealing with all the paperwork, receiving the mail and filing annual state taxes for your LLC.  Your registered agent can be someone within the company, including yourself.  Some people choose to name their lawyer as their registered agent, because one of the most important responsibilities of the registered agent is to "accept service of process," or be the one to be served with a lawsuit if the business is sued.  You must file the Articles of Organization and pay a non-refundable fee of $100.

Once you’ve formed your LLC, don’t forget to create an operating agreement.  An operating agreement is not required of an LLC in Virginia, but it’s always a good idea to have clear-cut rules and guidelines for your business.  An operating agreement is a simple legal document that outlines the operating procedures of your company.  If you’re interested in forming an LLC, or if you have already formed an LLC and would like to establish an operating agreement, we can help you draft the professional legal document you need.  Contact us for a free consultation.

Are you a newlywed or did you just get engaged?  Congratulations!  Have you decided to change your last name to match that of your spouse?  Your marriage license is all the proof you’ll need to make the switch.  You’ll also need to update your vital documents and your info with the DMV and the Social Security Administration to make it official.  Here’s how:

1.   Change your name with the Social Security Administration.

Fill out this application for a new social security card.  You’ll need to include a form of ID (such as a driver’s license or a passport), proof of US citizenship (a passport or a birth certificate) and your new marriage certificate.  You can submit these original documents by mail or in person.

2.   Update your driver’s license / ID card.

Take this application for a new driver’s license or ID card to the DMV.  You’ll need to bring your current ID or driver’s license as well as your original marriage certificate.  A new driver’s license will cost $20 and a new ID card will cost $10.

3.   Change your name on your vehicle title / registration.

While you’re at the DMV, after you’ve updated your driver’s license or ID card, you’ll need to apply in person with this application to update your car title.  You’ll need your marriage certificate and your current vehicle title.  There will be a $10 fee.

4.   Update your bank accounts.

Now that you’re married, you may want to change your bank accounts around, anyway.  Maybe you’re considering opening a joint account with your spouse.  In any case, you’ll need to go to your bank in person with your ID and your marriage license to change your name on your accounts.  Be sure to request new checks and debit cards reflecting your name change.  There may be a fee.

5.   Update your voter registration.

This step is pretty simple.  Update your Virginia voter registration information here.

6.   Hire a service to do it all for you.

Don’t feel like waiting in lots of long lines?  Name Change Packages are available through various venders that boast one single application for all these processes.  Read more here.  Packages usually start at around $30.

7.   Tie up loose ends as you go along.

There will probably be a few remaining places where you’ll need to update your information, such as your doctor’s office or your school.  In most of these cases, a simple phone call will suffice.