SENIOR SPIRIT
Living Longer & Loving It
WHEN LIFE HANDS YOU LEMONS, MAKE LEMONADE
An Indiana senior's inspiring story
By Marie Dykes
What's a 78-year-old great-grandmother doing working 40 to 60 hours each week? If you're Bernita Kimpel, your work is your life. "I can't give it up," she contends, "Why play bingo when I could be doing something useful?"
Bernita's lifelong passion was and is to better the lives of the disabled. Today, she works for Community Living, a private corporation that owns seven group homes in north-eastern Indiana. Sometimes she works as manager of supervisor; sometimes she provides hands-on physical care. "She's my role model for aging," says Joni Hawkins, residential director for Community Living. "She's never quit growing and learning." High praise for someone born with a learning disability!
Bernita's early years provide insight into the woman she is today. She contracted tuberculosis and was confined to a sanitarium at age 5. Even as a child, the pain of isolation and abandonment she witnessed at Rockville Institution haunted her, and she began entertaining her fellow patients by singing and dancing. But she discovered that the disabled don't want to be entertained; they want to participate in life. This discovery shaped her future.
Married at 16 and a mother soon after, Bernita grew up fast. Three of her six children were handicapped. Even so, she pursued her passion, gaining recognition or her work as a teacher and musical therapist. In a '70's interview, she was asked if her children's disabilities motivated her work with the handicapped. Bernita replied, "I made up my mind back in Rockville that I wanted to do this. My children had nothing to do with it."
By 1980, Bernita was an expert in teaching methods for the learning disabled. She taight seminars, wrote books and consulted with educators. And she was invited to participate in President Reagan's Committee on Employment of the Handicapped.
Her second marriage to Paul Kimpel in 1985 involved moving to a new community. Before long, Bernita discovered she was lost without her work and began looking for an outlet. She found Community Living and joined the staff in 1990. Soon, she began to assemble a rhythm band for the residents. Today, there are more than 60 mentally and physically disabled resident members preparing for their third annual concert. "This job probably costs her more than she makes, because she's always buying something for the residents," her supervisor confides. Bernita's answer "I love music, and I love putting on a show."
When will she retire? With regret in her voice, she says "I should quit when I'm 80." Don't bet on it. Her work helped her overcome the obstacles in her life. Says Bernita, "I thank the good Lord every night. I wouldn't have changed a thing about my life."
SENIOR MEDICAL BREAKTHROUGHS
FDA approves new drug for vision loss
The Food and Drug Administration recently approved Visudyne for treatment of certain types of age-related macular degeneration (AMD). AMD is the leading cause of blindness in those over 60, with sight loss occurring from the center of the eye outward. According to Dr. Neil Bressler, a retinal disease specialist at Johns Hopkins University, there are 200,000 new cases of AMD each year. Approximately 30 percent of those could qualify for Visudyne therapy.
"It's not a cure, but it definitely reduces further vision loss," notes Bressler. Visudyne is the first drug to offer positive results for the "wet" form of AMD. And although wet AMD only affects 10 percent of those with the disease, it is the most damaging. Without treatment, those affected will usually be functionally blind in two years.
Visudyne is a 20-minute treatment performed in a doctor's office. Injected into a vein in the arm, the drug spreads through the body, including the abnormal blood vessels in the eyes. Then, a laser beam is directed into the eye for about 90 seconds to activate the drug. Patients must avoid bright indoor light and sunlight for two to five days after the treatment.
Visudyne manufacturer QLT PhotoTherapeutics predicts costs of $2,000 per treatment. Typical Visudyne therapy will include five treatments over a two-year period.
Visudyne therapy isn't for everyone. Those already diagnosed with the wet form of AMD should consult an eye-care physician to determine if Visudyne is an appropriate treatment alternative.
GRANDPARENT CENTRAL
Survival tips for grandparents raising grandchildren
If you are one of a growing number of grandparents raising grandchildren, you understand stress. Parenting the second time around is challenging at best, and you need to be at the top of your form. Try these suggestions for keeping stress under control.
Take care of your health with regular checkups. Follow your doctor's advice, get adequate rest and maintain a healthy diet.
Walk or exercise 20 minutes three times a week.
Insist on a regular quiet hour when everyone naps or engages in quiet pursuits. Learn to relax during this time.
Take time for you. Give yourself a break by involving your "grands" in community or recreational activities.
Learn to say no. Set limits and stick with them.
Nurture your own spirit through a hobby or activity you enjoy.
Avoid isolation by staying in touch with friends.
Seek strength and assistance through your religious community and personal faith.
Join a support group. E-mail AARP's Grandparent Information Center at gic@aarp.org to find a group in your area.
If no local support group exists, consider starting your own. Helpful tips can be found by visiting www.aarp.org. Select "grandparents" in the Feature Finder at the top of the page. Then follow the links to support group information. Focus on the positive and keep your sense of humor.
ESTATE PLANNING STRATEGIES FOR SENIORS
What living trusts can and cannot do
Once thought to be reserved for the wealthy, revocable living trusts are sometimes applicable - even preferable - in modest estate plans. A living trust substitutes for a will, creating a legal entity (a trust) that holds title to your assets - property, cash, stocks and bonds. When completely and properly funded, living trusts avoid court-supervised probate, delays in asset distribution and excessive attorneys' fees.
The challenge is to determine whether a living trust is right for you. According to Jack Fuerst, a Texas estate planning attorney, the amount of money you have is only one of the determining factors. "You should also consider a living trust if you have a business you want to protect, property in more than one state or special needs or minor children to provide for after your death, " Fuerst advises. A living trust also protects you from court-ordered guardianship if you become incapacitated. In that event, your named successor trustee - someone you trust implicitly - takes over management of the trust and your affairs.
But informed consumers should also know what trusts cannot do. Lawrence M. Frangiosa, a Pennsylvania trust attorney, offers the following advise: "A living trust will not shield your assets from your creditors or from estate taxes; not is it a tool for Medicaid planning." The best advice is to do your homework. "Then, choose a well-established firm that will be around to answer your questions and provide quality service," says Frangiosa.
Both Fuerst and Frangiosa confirm that trust documents must be well-organized and contain readable language. Says Fuerst, "If you want to sleep at night, you need to understand what's in the document and if it works for you." For more information and to explore the specifics of your particular situation, consult with your legal advisor.
The Special Needs Trust
If you have a disabled child or spouse, you want to ensure their care after your death. But too often, that goal translates into a will provision or direct bequest that actually hurts rather than helps. Persons with disabilities usually qualify for public benefits - Medicaid, Section 8 housing assistance and Supplemental Security Income (SSI). Your disabled family member can lost benefits if named as a direct beneficiary of your estate. Even worse, the entire inheritance may be seized to recover public funds previously spent on that person's behalf.
Special needs trusts offer a solution. Ohio attorney Myron D. Wheatley explains the process. "A special needs trust is established by the terms of your living trust. Upon the death of the last surviving parent/caregiver, the special needs provision becomes a separate irrevocable trust," says Qheatley. "The handicapped child or spouse is excluded from directly receiving assets or income; instead, the successor trustee may use trust proveeds to provide enhanced education, furniture, clothing and other life-enriching extras. The object of the trust is to provide these extras without causing the beneficiary to lost public benefits.
That's why your choice of successor trustee is critical. Some experts recommend having a care manager or compliance professional serve as co-trustee with an adult child or other family member. Wheatley disagrees. "Make a decision. Empower one person to do the job," he asserts. He contends that co-trustees can create inaction - even deadlock - due to opposing opinions. "It's better to educate your trustee to hire professional assistance than to saddle them with a co-trustee," Wheatley concludes.
If you have heirs with special needs, consult with an attorney with estate planning expertise.
PRACTICAL TALK ON RETIREMENT ISSUES
When you can't manage your Social Security benefits
By Crispin Sargent, CSA
The Social Security Administration provides a mechanism for others to manage and direct your Social Security (SS) benefits when you cannot.
It's called "representative payee". A representative payee can be appointed in one of three ways:
You and your nominated payee appear together at an SS office and make application.
The potential payee applies under his or her court-appointed conservator or guardian powers. Social Security requires documentation to support incapacity.
The potential payee applies using a physician's statement that indicates you are incapable of handling your benefits. Social Security verifies all information for your protection.
Social Security does not recognize power of attorney in appointing a representative payee. The person holding power of attorney must apply using the third method listed above. A representative payee functions like a trustee who must:
PUT YOUR LIFE INSURANCE TO WORK
IRREVOCABLE LIFE INSURANCE TRUSTS
By Joseph Solomon, CSA, CFP, EA
Once a basic estate plan is set up allowing you to pass $1.35 million* estate - tax-free to your heirs, an Irrevocable Life Insurance Trust (ILIT) is ana excellent vehicle to reducd your remaining estate tax liability.
An irrevocable trust is one in which you (the grantor) transfer property to the trust, giving up all rights of ownership to that property. Therefore, you cannot revoke, terminate or modify the trust in any material way. When this trust holds a life insurance policy, it is an ILIT. Additional rules require that you (the insured/grantor) must live for at least three years after transferring the policy to the trust. And, you cannot be the trustee.
You can use your ILIT as follows:
To pay for estate taxes
To help meet other liquidity needs of your estate
To provide for income needs of survivors
To avoid creditor claims at death
To replace donated assets
An ILIT may be "funded" or "unfounded". In a funded life policy,m you will transfer your personal, fully paid-up life policy to the trust. The typical ILIT, however, is an unfounded life policy, which means you will need to make annyual cash gifts to the trust. The trustee will use these to pay premiums.
For more information about ILITs' consult with your legal advisor or estate planning professional.
$675,000 estate tax exclusion per person
CENTENARIAN SALUTE
Alma Jelle
By Lynn Peters Adler, JD
Independence is Alma Jelle's hallmark. At 101, this strong-willed woman is doing as she's always done - making her own way in the world.
When she was 10, Alma's family moved from the farm into Bricelyn, Minn., a town of 500 people. Alma remembers registering for the sixth-grade, but being put back into the first. "This upset my parents," she recalls with a smile, "but it was an advantage for me. I was just a timid country girl who had a lot to learn from those hardened city kids."
A graduate of Winona Teachers' College, Alma taught elementary school for 22 years. Then she grabbed at the chance to live in New York City and work in the trust department of Chase Manhattan Bank. Her apartment was near Columbia University so that she could attend classes and activities there.
Age mandated her retirement 20 years later, but Alma wasn't finished. "For the next 11 years, I returned to the same job for a few months each year until I earned the amount Social Security allowed." Alma recalls.
Over the years, her travels often led her to Arizona. In 1974, Alma bought a condo in Mesa - "on impulse". Once again, a major move worked for her because she got involved in her community. Six years ago, she sold her condo and moved into her present apartment. "I handled the entire transaction myself and all in one month." She declares. She is proud of living this long and being able to take care of herself. "I have my aches and paind, but I get along," Alma says with satisfaction. "I feel very blessed."
