Anthony B. Ferraro

Anthony B. Ferraro is the founder and managing member at the Law Offices of Anthony B. Ferraro. He received his Bachelor of Science degree in accountancy from DePaul University and his Master of Science in taxation. After receiving his CPA designation in 1978, he enrolled in law school, earning his Juris Doctor in 1983 from De Paul University. An elder law practitioner, his practice areas include Medicaid planning and applications, guardianship, probate & trust administration, long-term care planning, nursing home contracts and admission, senior estate planning, special needs planning, estate planning, and estate taxation.

The real threat to our long-term financial health

Worried about the 35% estate tax? That’s peanuts! How about the 100% “Medicaid tax”? For years, clients have been very concerned about the estate tax. I have reassured them that the estate tax will not impact you unless you have more than $5 million for individuals and $10 million if you’re married. Now contrast that to the cost of what I call the “Medicaid tax.” The “Medicaid tax” is the government’s requirement that you spend your assets down to $2,000 (as a single person) before you get any Medicaid help for your custodial care or long- term care, either in …

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The fiscal cliff and its impact on seniors

At 2 a.m. on Jan. 1, 2013, the Senate overwhelmingly passed a compromise bill, called the American Taxpayer Relief Act of 2012, and narrowly averted the fiscal cliff. But what does that mean for seniors? Consider the following: 1. Tax rate changes — The bill permanently extended current tax rates for individuals earning less than $400,000 and couples earning less than 450,000. Wealthy taxpayers earning $400,000 or more will revert back to a 39.6 percent tax rate (up from 35 percent). Taxpayers in this category will also see an increase in their capital gains tax rate and dividend tax rate …

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Take the elder-care test!

What are the three most common fallacies about long-term care and long-term care insurance? Fallacy 1 — I’m never going to need long-term care. Approximately 1 in 68, or 4 million, people in the United States are afflicted with Alzheimer’s disease; approximately 1 in 272, or 1 million, people in the United States, are afflicted with Parkinson’s disease; and 1 in 27, or 10 million, people in the United States are afflicted with osteoporosis (8 million women/2 million men). Fallacy 2 — If I never use long-term care insurance, I will lose it. Not true anymore! Modern policies have return-of-premium …

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So you’ve been named executor

Quite often a good friend or member of your family will have a will or trust drawn up and ask you to act as the executor or trustee. You may feel honored and compelled to accept this office. This article is intended to provided a very basic overview of the estate administration process: gathering of estate data; payment of debts, expenses and taxes; and the distribution of the estate in accordance with the provisions left behind by the deceased. This article is not intended to provide legal advice. As the personal representative, you are primarily responsible for settling the affairs …

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Update your powers of attorney TODAY!

It never fails. Prospective clients come into the office who are very old or very ill, proclaiming that they have powers of attorney. We take one look at the documents and realize that they are outdated and nearly worthless. Why? Because their powers of attorney are just “plain-vanilla.” There are no specific authorizations inserted for * public benefits planning, Medicaid, Medicare, etc. * Social Security elections * retirement planning elections * gifting for Medicaid benefits planning or tax planning * account changes * options for housing changes * tax planning authority Be careful though, some of these powers can create …

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The delicate balance of care options

When you or a loved one become unable to completely take care of yourself, the question, “What care option is best?” becomes important to answer. While it is important to consider one’s personal wants and needs, it is equally important to weigh out what the future may hold in terms of changes in the type of care needed. With care being so expensive today, you may need to look into applying for VA benefits or Medicaid to help pay for your care, adding another challenge to balancing and planning for the care that may be needed. The following is meant …

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Major changes to Medicaid rules

If your family member has dementia or Alzheimer’s, then they’re on a journey. Hopefully, this Elder Law Update will help you understand what lurks around the next bend, especially pertaining to the new rules for Medicaid. The year 2012 has seen two major pieces of legislation impact Illinois seniors, including those with dementia and Alzheimer’s. First, effective January 1, 2012, Illinois put into effect the Federal Deficit Reduction Act of 2005, with retroactive effects to January 1, 2007. This rule affects almost every aspect of Illinois Medicaid relating to long-term care for seniors, including eligibility for medical assistance, income standards, …

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Dementia and Alzheimer’s: The First Legal Steps

A few weeks after Francesca’s doctor told her she might have Alzheimer’s disease, her son Joseph visited her. “Mom, I’ve been thinking we might need to talk,” Joseph said. “Ever since Dad died, I’ve been trying to help you with the financial details Dad usually handled.” Francesca nodded, but said nothing. “Now, don’t get me wrong, Mom. We know you’re still doing pretty well on your own right now,” Joseph continued. “And hopefully you’ll be able to for years.” Francesca folded her hands in her lap. “So then let’s not worry about it now.” Handling the Problem While Francesca is …

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Planning for Alzheimer’s

The most common type of dementia, Alzheimer’s affects approximately 4 million Americans. The disease is characterized by progressive changes in behavior and personality and can include gradual declines in mental abilities such as thinking, memory or judgment. Memory loss or forgetfulness is the best-known sign of early Alzheimer’s. This might include difficulty remembering recent events, performing familiar tasks, using words correctly, finding the way home, making decisions, or locating lost objects. A person with Alzheimer’s may frequently lose keys or other objects, forget whether an ingredient has been added to a recipe, withdraw from usual activities, or have trouble driving …

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State changes Medicaid for the worse!

Illinois citizens should be up in arms about the so-called Medicaid reforms contained in the SMART bill that recently passed the state senate and house and at press time was awaiting the signature of the governor. Those changes will adversely impact many residents of the state. These changes were made to the Deficit Reduction Act (DRA) of 2011 by the Department of Healthcare and Family Services (HFS) despite the vigorous lobbying of the Joint Committee on Administrative Rules (JCAR). They amount to an assault on the financial security of many citizens of the state. Assault on Homesteads A home held …

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