Wednesday, September 21, 2016

Using a Private Criminal Defense Lawyer

Using a Private Criminal Defense Lawyer: Part Three

Part three of using a private criminal defense lawyer: Learn about the costs and typical types of fee structures a criminal attorney may employ.


by , UCLA Law School Professor
Continued from Part Two
Law Office of Marc A. Calello
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862-955-1459 
Cassandra T. Savoy
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What’s a private criminal defense lawyer likely to cost?

More than most people really want to pay. However, as is so often the case in legal matters, a definitive answer to this question is impossible. Attorneys set their own fees, which vary according to such factors as:
  • The probable complexity of the case. Most attorneys charge more for felonies than for misdemeanors, because felonies carry greater penalties, often require more court appearances, and so on.
  • The attorney’s experience. Generally, less experienced attorneys set lower fees than their more experienced colleagues.
  • Geography. Just as gasoline and butter cost more in some parts of the country than others, so do attorneys.
Because of factors such as these, standard legal fees do not exist. According to a survey of readers reported in Consumer Reports, the median legal fee charged by lawyers in criminal cases was $1,500. (Median means that the fees were over the amount in as many cases as they were under the amount.) Because many of these cases only involve a consultation or a single court appearance, most defendants can expect to pay much more for full representation. For example, a defendant charged with a misdemeanor that goes to trial should not be surprised by a legal fee in the neighborhood of $2,000–$3,000; an attorney may want an advance of around $2,500, and $1,000 per day of trial in a felony case. Moreover, most attorneys want all or a substantial portion of their fees paid up front (in advance).

BEWARE SUPER-LOW HOURLY RATES

With legal fees so high, most defendants understandably want to pay as little as possible for effective representation. However, a low hourly rate can be misleading. An experienced attorney with a high hourly rate may be able to resolve a case more quickly and satisfactorily than a novice with a much lower hourly rate, and therefore be less expensive in the long run.

How do criminal defense lawyers decide how much to charge?

Criminal defense lawyers usually charge either by the hour or by the case. Increasingly, the latter type of billing arrangement is more common in criminal cases.
Hourly billing
Defendants who are billed by the hour pay for the actual time their lawyers devote to their cases—say, $150 per hour. They may also pay for expenses a lawyer incurs in the course of the representation, such as copying fees, subpoena fees, and so on.
From the defendant’s standpoint there are advantages and disadvantages to hourly billing. The most important advantage is that defendants who pay by the hour benefit if a case concludes quickly. However, if the case becomes unexpectedly complicated, it can get very costly. Moreover, hourly fees give attorneys a financial incentive to devote more time to a case than it may warrant or the defendant is prepared to pay. Also, most criminal defense attorneys set a minimum retainer fee that they keep even if a case is resolved with one phone call.
Fortunately, experienced defense attorneys usually can anticipate how many hours they are likely to spend on a case, and a defendant should not agree to an hourly charge without getting the attorney’s good-faith estimate of how much time the case is likely to take.
Case billing
Lawyers who charge by the case represent defendants for a fixed fee. For example, a lawyer may set a fee of $1,500 for a defendant charged with drunk driving. The fee would not change according to the number of hours the lawyer devotes to the case.
As with hourly billing, the case billing approach has its advantages and disadvantages. The primary advantage is certainty. Defendants know going in what their cost will be, and the attorney bears the risk of unforeseen complications. However, a defendant may feel ripped off if the case settles very quickly. (In some quick settlement circumstances, attorneys will refund a portion of their fee. But many will not, and a client should not expect a refund if the case is resolved quickly.) Also, the fee may cover only the pretrial phase of the case; the attorney may require an additional substantial fee to actually try the case. As with other types of information, the defendant should clarify this point before hiring the attorney.
Hourly Fee With a Cap
A defendant may also agree to pay an hourly fee but only up to an agreed-upon fixed sum. After that amount, the lawyer finishes the representation at no extra cost to a defendant. This approach combines the advantages of both of the fee arrangements discussed above while minimizing the disadvantages.

What is a retainer fee?

Whether they bill by the hour or by the case, defense lawyers typically want defendants to pay a retainer fee up front, before the attorney begins working on the case. For example, a lawyer who bills at the rate of $100 an hour may want clients to pay up front for 20 hours of the lawyer’s time, or $2,000. The lawyer will send the client regular statements showing how much time the lawyer has spent on the case, what was done, and how much of the retainer has thus far been used. If the balance in a defendant’s account approaches zero, the lawyer will probably ask the defendant for an additional payment (unless the lawyer is working for a set fee).
The lawyer will refund to the defendant whatever portion of the retainer remains at the end of the case.

I’ve heard of contingency fees, where an attorney gets paid only if the attorney wins the case. Can I arrange for a contingency fee in a criminal case?

No. Lawyers who work on a contingency basis take their fees from money their clients recover as damages; if the clients collect nothing, the lawyers get nothing. Defendants in criminal cases don’t recover money damages if they win, so there’s no pot of money from which an attorney can collect fees. Furthermore, while contingency fees are common in some types of civil cases (particularly personal injury cases), contingency fees are considered unethical and are not permitted in criminal cases (Rule 1.5(d) of the ABA Model Rules of Professional Conduct).

How do I find out what services I’ll be getting for my fees?

Defendants should carefully examine the terms of the attorney-client agreement they are asked to sign. Until recently, this would have been difficult, because many attorney-client arrangements were oral and based on handshakes. Today, after reaching agreement with a defendant about fees, a lawyer will almost certainly ask the defendant to sign a written retainer agreement or fee agreement. The agreement is a written contract, fully enforceable in court, which specifies the attorney’s fee and the services the lawyer will perform for that fee.
Knowing the amount of an attorney’s fee is one thing; knowing what services it covers is quite another. Many defendants who are fully aware of what their attorneys will charge are surprised when their attorneys inform them that they will have to pay extra for services that the defendants thought were included in the fee. For example, the reality is that most cases are settled before trial. Because of this, a fee agreement may include an attorney’s services only up until the time of trial. A defendant who wants to go to trial may therefore get a jolt when the attorney says, “My additional fee to take the case to trial will be $$$.” Other extras that may come as a surprise to a defendant include:
  • the cost of a private investigator
  • expert witness fees
  • the costs of copying documents and subpoenaing witnesses, and
  • the attorney’s fees to handle an appeal from a conviction.
There are no standard agreements. Just because one attorney performed a set of legal services for one all-inclusive fee does not mean that another attorney will do likewise. The key for defendants is to read retainer agreements carefully and ask their attorneys to explain possible extras.

WHEN CHANGING LAWYERS MIGHT UNFAIRLY PREJUDICE THE PROSECUTION’S CASE

A defendant’s right to change lawyers must be weighed against the prosecutor’s right to keep the case moving on schedule. Assume, for example, that a defendant seeks to change attorneys on the eve of trial. The new attorney is likely to agree to represent the defendant only if the trial is delayed so that the new attorney can prepare. The prosecutor may oppose delay, perhaps because the prosecution witnesses will not be available to testify at a later date. In these circumstances, the judge may deny the defendant’s request to delay the trial. This would mean—realistically—that the defendant would have to stay with the original attorney rather than bring in an unprepared new attorney.

Can I change lawyers if I’m unhappy with the one I hired?

Yes. Defendants who hire their own attorneys have the right to discharge them without court approval. A defendant does not need to show good cause or even justify the decision to the lawyer. (Most attorney-client agreements explicitly advise clients that they have the right to discharge their attorneys.) After discharging a lawyer, defendants can hire another or, if qualified, represent themselves. Of course, the decision to change lawyers can be costly. In addition to paying the new lawyer, the defendant will have to pay the original lawyer whatever portion of the fee the original lawyer has earned.

What can I do if I think my lawyer overcharged me?

In many states, bar associations (that is, organized groups of lawyers) can protect defendants against fee gouging. Many lawyer-client fee agreements provide for arbitration in case of a dispute between attorney and client over fees. Often, a state’s bar association selects the arbitrator. Many arbitrators are very sensitive to fee gouging, and will often reduce the fee of an attorney whose charges are out of line with others in the same geographical area.

Do I have to hire a lawyer selected by my relatives or friends to get me out of jail?

No. Defendants who are in jail commonly ask relatives or friends to contact a lawyer for help in securing a speedy release. But a defendant doesn’t have to hire that lawyer. If the attorney wants to be paid for arranging for bail, the attorney will have to look to the relative or friend who contacted the lawyer.

NEGOTIATING A REDUCED OR ALTERNATIVE FEE

Many attorneys will settle with clients who are unable to pay their full fees—especially when the alternative is a hearing before a bar association arbitrator. Before filing a claim with the state bar, a defendant should seek a friendly resolution with the lawyer. The lawyer may well agree to extend payments or reduce the fee. An attorney might even accept an "in-kind" payment in lieu of part of the fee—say, a painting from an artistic defendant, or a piece of handmade furniture from a carpenter. Be creative!

How can I be sure that I have my attorney’s undivided loyalty?

Attorneys have a duty of loyalty to their clients and should not take on a case if representing the defendant would cause a conflict with other cases handled by that lawyer, or the lawyer’s own personal or business interests. (See Rule 1.7, ABA Model Rules of Professional Conduct.)
Here are the types of questions that defendants can ask to make sure that they have a lawyer’s loyalty:
  • "Even though my mom (or uncle, etc.) is paying your fees, am I the one with whom you will discuss all important case strategies, including plea bargains?" No matter who is paying a lawyer’s fee (even if the government is paying the fee), a lawyer’s duty is to the client and not to whoever is writing the checks. For example, a lawyer cannot disclose a defendant’s confidential communications to the person paying the defendant’s fee. And it’s up to the defendant, not the fee-payer, to decide whether the defendant will plead guilty.
  • "I'm charged with embezzling money from the city department where I worked, and I think I’m being made a scapegoat for political reasons. Do you represent any local agencies or politicians that will prevent you from showing who’s really responsible for the money that disappeared?" Defense attorneys often try to show that others are responsible for the crimes with which their clients are charged, and defendants do not want to be represented by lawyers whose hands may be tied.
  • "If I decide that I want to go to trial, will you support that decision?" Sometimes attorneys take cases expecting them to settle and have no real desire to go to trial. As a result, a lawyer’s advice may reflect the lawyer’s agenda rather than the client's.

EXAMPLE

Attorney Frieda Mann represents Jen Delein, who is charged with the unauthorized practice of law. Jen insists that she’s not guilty and wants to go to trial. However, in an effort to get more court referrals, Mann is trying to establish a reputation in the local courts as a lawyer who can settle cases before trial. Therefore, Mann repeatedly urges Jen to plead guilty in exchange for a very small penalty and no jail time. By putting her own interests above her client’s, Mann has violated her duty of loyalty to Jen. Mann’s primary motive is to develop her law practice rather than to represent her client. Jen should ask Mann to return all or most of the money she has already paid, and hire a different lawyer. If Mann fails to return Jen’s money, Jen should file a complaint with her state or local bar association.
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Private Investigator Services

Private Investigator Services


What is a private investigator?

Private investigators, also known as private detectives or PIs, are hired professionals specializing in research, surveillance and other methods of investigation. Although PIs are not police officers, many have a criminal justice background and certain states even require this experience to be able to work as a licensed private investigator. PIs will work for private individuals or companies and attorneys may hire private detectives to find out information for a case.

What does a private investigator do?

Private investigators can cover a wide range of work. Not all PIs do all these things, so its important to find an investigator who has experience or expertise that matches the job you are wanting to have done. Common work for a private investigator includes:
Investigating an individual such as a spouse or partner suspected of cheating or a person suing you for an injury that you aren’t convinced is injured.
Finding an individual such as a long-lost relative or someone who owes you money and left town.
Locating objects such as stolen property.
Investigating crime such as in-house theft for a business or a home invasion of an individual when the client feels regular police attention isn’t enough.
Background checks for potential new employees or others.
Setting up surveillance equipment and monitoring including GPS monitoring.
Case research for attorneys.

Private investigator cost

For certain services such as background checks, looking up a vehicle registration or identifying a cell phone number, private investigators may charge a flat fee. Most commonly, though, private investigators charge an hourly rate. Depending on your location, complexity of the work and expertise of the private investigator, fees can range from $40 to over $100 per hour with the average somewhere around $50 an hour in the United States.
Be aware that depending on the work being done, there may be cost to hiring a private investigator beyond the hourly rate. You may need to be prepared to pay expenses such as plane tickets, hotel rooms, long-distance phone calls, equipment costs or gas milage. Some private investigators may require a deposit or retainer upfront to cover potential expenses.
Be sure to have a written contract upfront that outlines all potential costs. Your private investigator should inform you beforehand if something changes and will require an increase in the cost. Always ask for an itemized list of expenses and specific records of activities you are being charged for to be given to you at the end of the job.

Hiring a private investigator

Finding a trustworthy and qualified private investigator can be an intimidating task so here are some tips to help you know how to hire a private investigator.
1. Get a referral. It is likely that you will be sharing personal information with this person and so it important to find someone reliable. Do as much research on the investigator as possible. Ask trusted friends for recommendations and if you are an Angie's List member, you can search for any local consumer reviews on private investigators. You can, and should, also ask your potential private investigators for references you can call.
2. Check their license. The only states that don't require licensing for private detectives are Idaho, Mississippi, South Dakota and Wyoming, and licensing is voluntary in Colorado. A professional private detective will be able to give you their license number immediately and you can check it with your local municipality to make sure it’s valid, has a matching name to your private detective and if any complaints have been filed against them.
3. Make sure they have an office. If your private detective only works out of restaurants and over the phone, that is a sign you should get out now. You need to know where to find this person if they don’t follow through on their obligations.
4. Ask about their experience and education. To make sure your job gets done right, find a detective who specializes in the task you need. Ask about how much work they have done similar to what you want in the past and how those jobs worked out.
5. Consider whether they have insurance. Most serious private investigators are insured up to a few million dollars. While it’s not necessary for all jobs, if something were to happen during the course of the work, you, as the hirer, would be held liable if there was no insurance coverage.
6. Talk about confidentiality. You are very likely dealing with sensitive information when  you are working with a private investigator and you need to be sure your PI will be discreet and respectful of information shared between the two of you.
7. Feel comfortable with the private investigator. If you don’t feel like the private investigator communicates well with you or if they pressure you or make you feel uncomfortable in any way, you should probably choose a different private investigator to work with.
8. Get a contract. Your initial consultation with a private detective should be free and from there, they should be able to outline anticipated cost. If you choose to follow through with the work, make sure all fees and expectations are clearly outlined in a contract.
9. Be sure you are prepared for what a private investigator may uncover. You are hiring a private investigator to uncover something for you and especially when it involves people close to you, be sure you are ready to for whatever the PI may find. You may hope the private investigator will prove your fears wrong, but be sure you can handle what they may turn up to prove your fears right before you hire their services.
https://www.angieslist.com/research/private-investigator-services/

How Much Does it Cost to Hire a Private Investigator?

If you are thinking of using the services of aprivate investigator, you may be wondering what the cost of hiring private investigators will be. Around the country, private investigator fees vary by location and type of services. For investigators with extensive experience and training, expect to pay higher fees. The numbers quoted in this article are estimated cost ranges based on average pricing offered by private investigators across the United States.

Before you hire a private investigator, find out all costs and fees for the services you require. Most private investigators offer a free initial consultation. Here are some questions to ask a prospective private investigator regarding fees:

1. Does the private investigator charge a flat fee for services?
Some private investigators can quote a flat fee for certain basic services such as background checks, research work, and specialized equipment such as GPS units. Other services that commonly are charged a flat fee include:
  • identifying a cell phone number
  • vehicle registration search
  • criminal record search
  • "bug sweeps" of home or car
  • GPS monitoring
2. What are the private investigator's hourly fees?
Hourly rates vary based on where the private investigator is located, the difficulty of the investigation, and whether the private investigator will need the assistance of other private investigators.

Throughout the country, fees range from approximately $40-100 per hour. The average hourly rate is around $50-55 per hour. Keep in mind that there may be additional fees attached to the hourly rate. A common addition is mileage expenses, usually around $0.45 per mile.

That hourly rate may increase significantly if another private investigator's services are needed in order to complete your case. For example, if your private investigator needs the assistance of an associate overseas, the hourly rate may be high. In some parts of the world, private investigators charge as much as $300 per hour.

3. Does the private investigator require a deposit or retainer in addition to the private investigator fees?
Many private investigators require a retainer or deposit to be applied against fees for services rendered and expenses. Some private investigators may set retainer fees depending on specific services. For example, data research may require a deposit of $500 while an infidelity case may require a deposit of up to $5,000. Criminal defense work may require a retainer of  $1,000-3,500. The following factors help to determine the deposit amount:
  • travel involved
  • airline/hotel costs
  • estimated number of surveillance hours
  • location
  • urgency
If you are using a private investigator's services through an attorney, the private investigator will usually not ask for a retainer as long as the attorney acknowledges responsibility for ensuring payment of the private investigator's invoices.

Once you hire a private investigator, make sure that the private investigator keeps a record of his/her activities and ask for itemized lists of the work that has been completed. Don't forget to sign a contract with the private investigator detailing in writing the services to be performed.

Find a Trusted Private Investigator

PInow is the fastest way for you to find a pre-screened, qualified private investigator. Search by location and investigation type to find trusted private investigators who have been pre-screened and vetted.
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How Much Does Public Relations Cost?

How Much Does Public Relations Cost?


One of the most common questions potential clients of our public relations firm ask when they call us is, “How much does public relations cost?” This is a difficult question to answer, and we’ll do our best to explain some PR investment guidelines.
Investing in professional public relations is a lot like buying a new car. With so many different models and options available, the costs vary considerably. A four-door Chevrolet sedan costs less than a similar Mercedes, and even the price of the Chevrolet can almost double when you add leather seats, a premium stereo, alloy wheels, power windows, power door locks, GPS, a DVD player, a rear-view camera, a sunroof, seat warmers, hybrid capabilities and other optional upgrades.
When basic transportation is available for around $10,000, why do so many people buy loaded luxury sedans costing so much more? And why has a Ford pickup been the best-selling “car” in America for years?
It’s because most people understand that getting what you want – and need – when you buy will save you from regrets later. You can add speed control to a used car, but it’s usually more expensive and not as good as what you could have gotten from the factory.
You use your car to drive to work, the grocery store, soccer practice, the golf course, the mall, the airport, romantic dinners and perhaps to entertain clients. You want to ensure the car you buy will be reliable, comfortable and enjoyable for as long as you own it. You’ll also want a car that best represents your image in business and the community.
The same things should be true of your public relations firm. You rely on your PR counsel to develop your brand and help grow your company. You need to be comfortable with the firm’s people and practices, and you should expect to enjoy the fruits of their efforts – more customers, more investors, better employees, a strong brand and a great reputation.
Unfortunately, many companies focus only on the price of public relations, ignoring the true cost of choosing the wrong PR firm: poor results, a diluted brand, a tarnished reputation and a long-term contract designed to keep you from “trading-in” a firm that isn’t helping you reach your goals.
Keeping with the car analogy, let’s list some options that can affect the price of PR:
  • Media relations – earning positive news coverage for your company, its products, services, leaders, experts, opinions and ideas
  • Social media – managing your Facebook, Twitter, LinkedIn and other social media programs
  • Spokesperson training – teaching you how to ace interviews and stay on message
  • Crisis communications management – developing a crisis plan and protecting your company and its reputation during a crisis
  • Internet reputation management – cleaning up negative reviews and websites from search engine results
  • Company naming and branding – putting together the right image for your business
  • Thought leadership – helping your company’s leaders become known as industry visionaries
  • Public speaking engagements – spreading your brand message by booking your company’s leaders as speakers
  • Award entry and recognition – earning you and your company the attention you deserve
  • Special projects and misc. – let’s get it done
As you can see, there are several options available. When a client asks us to provide a price for our services, the first thing we do is determine which options the client wants – and also what might be needed instead – and how important those options are to the company.
Just as a family with four kids is going to need a minivan, SUV or a larger car, a company with many office locations and divisions is likely to need more services – or at least more in-depth services – to handle the large operations. An individual or a couple might be happy with a 2-seater, but whether that’s a Smart car or a Ferrari is going to depend on their unique needs and preferences. How fast – and how far – you want your company to grow will determine how much work a public relations firm will have to do for you.
Developing and implementing a media relations campaign for a new product, service or project for a company that doesn’t desire or require other services will cost less than a comprehensive public relations service to develop your company’s brand nationwide, including national media relations, social media management, executive training, developing a crisis PR plan, scheduling you and your leadership for speaking engagements, positioning you as a go-to expert on your industry and earning your company the awards and recognition it deserves.
Several PR firms work on an hourly-fee basis, charging you $100 to $300 for every hour they work on your behalf, and most require a retainer. Their business models are similar to a taxi with which you have to sign a year-long contract. As long as you don’t want to go far, it might be cheaper than buying a car. But if you plan to drive every day and your goal is to really get somewhere, a fee-basis firm can cost you a fortune. If you don’t use them as much as you thought you would, you’ll lose the unused portions of the retainer.
Axia doesn’t require a retainer, nor do we charge hourly fees beyond such. First, we implement a four-month trial period based on an agreed-upon investment, which is either payable upfront with a prepayment discount or payable monthly. In the four months, we want you to have a chance to see what we can do for you and your company and get to know us and our unique approach to PR. After that, most companies see the benefits of Axia and become clients for life. Monthly public relations campaigns with our PR firm start at $5,000 for local and single audience PR solutions, and may exceed $30,000 for far-reaching national programs.

Do-it-Yourself Public Relations

Public relations isn’t rocket science. There are plenty of books, articles and resources to help you do your own PR online or through other resources. AXIA recently introduced a series of free e-books designed to teach you everything our experts know about the ethical practice of public relations. We’ve also redesigned our newsletter, AXIA’s 60 Second Impact, to do the same thing in snippets that take less than a minute to read.
While PR isn’t magic, it is hard work and requires the attention of a dedicated, seasoned, intelligent professional. Don’t be fooled by companies and websites that promise to make it cheap. Some of them promise to deliver hundreds of press releases for a fraction of the cost of a professional PR firm. The truth is, most of those news releases are delivered to low-traffic websites that lack credibility and no one will ever see them. The rest will show up in the already overloaded inboxes of editors and reporters who will never read them, or who have opted out of their poorly written, spammy mailing lists. Click Here to calculate the cost of doing PR in-house.
You can develop relationships like we have – over our 10-year history as a firm and our decades of individual experience – with USA Today, Wall Street Journal, Fox News, CNN, Cosmopolitan and hundreds of other major news media outlets we’ve gotten our clients featured in, but why should you? Like the food and beverage experts at Dave & Buster’s, the communications experts at Verizon and the industry experts at Brightway Insurance (who experienced a 300-percent increase in call volume two weeks after we started a PR campaign for them), you are the expert at what you do.
And AXIA is the expert at public relations.
How much does public relations cost? How much do you want to grow?
http://www.axiapr.com/blog/how-much-does-public-relations-cost
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Study Shows Real Cost Of Living In NJ

Study Shows Real Cost Of Living In NJ


EDISON – A new study by Legal Services of New Jersey establishes what it really costs to live in the Garden State, and reports that more than one million workers, despite holding down full-time jobs, still are falling short – often well short – of meeting even bare-bone living needs.
For the impoverished and those without jobs, it’s even worse in a high cost of living state like New Jersey. For them, deprivation – trying to survive without adequate food and other necessities – is an unending struggle.
The just-released study found that a couple with two kids needs anywhere from $64,000 to $73,371 a year just to squeeze by in New Jersey, which ranks among the highest cost of living states in the nation, actually number one in housing costs. More specifically, the study, focusing primarily on four family sizes, calculated that the real or true cost of living on average for New Jerseyans in full-time jobs amounts to $28,593 for a single adult, $56,865 for an adult with two school-age children, $64,238 for two adults with two school-age kids, and $73,371 for two adults with two preschoolers. Below these levels, for the average households some deprivation of essentials for living will occur.
The detailed analysis of what has been occurring in the last decade or so pinpoints an ominous trend in the Garden State: living costs have been escalating at the very time wages have been plummeting.
The study by the Legal Services of New Jersey Poverty Research Institute offers new insight into the nearly constant struggle for survival of many working New Jerseyans. Inherent in that finding is how they, even while holding full-time jobs, have to skimp or juggle just to meet basic needs, such as sufficient food, adequate heating of the home, enough funds for a medical care copayment, or even fixing a broken appliance. And the situation is even more precarious for households with at least one disabled worker.
About 25 percent of all full-time workers are falling below what it costs just to cover the basics of daily life – a roof over their heads, enough food on the table, child care while at work, transportation to the job – with nothing left over for any extras or even emergency repairs to the refrigerator or the clothes washer, according to the new report.
This is the fifth real cost of living study done by Legal Services over a 12 year period, from 1999 to 2011. The results show that the real cost of living, known as the RCL, has jumped dramatically – anywhere from 18.5 percent to nearly 30 percent. During the same dozen years, though, median wages fell by 4.4 percent.
“What we are seeing is that hundreds of thousands of people, even when holding down one and sometimes a second job, are still unable to keep up with rising living costs,” said Legal Services president Melville D. Miller, Jr. “Most are at best barely getting by – and the true costs of living cited in the study do not even take into account many extras, such as savings for college or retirement, major purchases like a car, emergency costs, or even occasionally eating out or going to the movies. Sadly, just the cost of the basics is overwhelming for many New Jerseyans. And it’s even harsher for the impoverished and the disabled.”
The report, entitled “The Real Cost of Living in New Jersey — What It Takes To Meet Basic Needs and Avoid Deprivation,” provides real cost of living figures for each of the Garden State’s 21 counties, with highs and lows varying widely based on location. The study utilizes what is widely viewed as the most comprehensive methodology for determining living costs, one that is the basis of studies done in 37 states, as well as the District of Columbia and New York City. The New Jersey study, done in conjunction with Dr. Diana Pearce of the Center for Women’s Welfare at the University of Washington in Seattle, who pioneered this line of research, lays out actual living expenses rather than utilizing generic or one-size-fits-all calculations often incorporated into other income shortfall barometers, such as the federal government’s table of numbers for defining poverty.
A key finding is that the RCL is much like a magnet, limiting where people can live and effectively dotting the state with pockets of poverty. The counties in New Jersey with the lowest living costs, on average, have the higher poverty rates, while the reverse is true for the counties with the highest living costs. The report says that raises “troubling questions” over the “possible interaction between cost and entrenched patterns of economic residential concentration.”
Six southern counties – Atlantic, Camden, Cape May, Cumberland, Gloucester and Salem – are among the ten with the lowest living costs. At the same time, seven northern counties – Bergen, Mercer, Monmouth, Morris, Passaic, Somerset and Union – are among the
ten most costly locations for basic living expenses.
While the study focuses on living costs for four different working family sizes, it also developed average costs for 70 family compositions in each of the 21 counties. It finds that the minimum full-time pay needed in 2011 to meet the RCL averaged $13.75 an hour for a single person, $27.34 per hour for one adult with two school-age children, $15.44 per hour for two adults (both working) with two kids in school, and $17.64 per hour each for two working adults with two preschoolers.
There are considerably more than a million full-time workers in New Jersey earning less than $13.75 an hour, the study notes.
To afford the real cost of living, for example, a New Jersey couple with two preschoolers would need employment that collectively paid about $35 an hour or some $1,400 a week, because the RCL for a family of that composition in the Garden State averages $73,371.
From its number-crunching involving 70 family types, representing the vast majority of all family compositions, the study develops the following average cost of living threshold for each of the 21 counties:
Atlantic, $51,395; Bergen, $81,212; Burlington,$70,224; Camden, $58,966; Cape May, $58,134; Cumberland, $60,415; Essex, $57,095; Gloucester, $61,700; Hudson, $55,432; Hunterdon, $76,349; and Mercer, $69,545.
Also, Middlesex, $68,645; Monmouth, $58,966; Morris, $74,172; Ocean, $69,857; Passaic, $71,095; Salem, $52,184; Somerset,$58,966; Sussex, $67,386; Union, $70,483; and Warren, $62,612.
Generally, variations in housing and child care expenses are the key factors leading to RCL differences among counties.
For many workers costs – especially for housing, child care and food – are rising far faster than their paychecks or any incremental increases in income, according to the study. For New Jerseyans without jobs and those living in poverty, the situation is even graver: statistics show that increases in living costs between 1999 and 2011 have steadily outdistanced increases in the minimum wage and virtually all public assistance programs, such as welfare,, most of which showed no or only slight increases during the span.
The study notes that the findings could be useful in many ways, including as a “tool that policymakers may use to see the extent of income inadequacy in New Jersey and to evaluate public assistance amounts, wage levels, and antipoverty policies.”
It can also prepare people for the harsh realities of making ends meet from day to day in a state where costs are comparatively higher than in many other parts of the country, especially for housing. Applying the real cost of living to gauge income shortfalls makes the oft-cited federal thresholds for defining poverty seem grossly understated, because Washington uses the same cost estimates for all states except Hawaii and Alaska.
As set by Washington, the Federal Poverty Level (FPL) in 2011 was $11,702 for a single person, $18,123 for a family of three and $22,811 for a family four. In comparison, the Legal Services study determined that the real cost of living in New Jersey for the four family sizes studied is anywhere from 244 percent to 322 percent higher than the FPL. By that measure, there are upwards of 2.5 million people in New Jersey living in poverty.
Take, for example, a woman with two school-age children in Monmouth County who has an income of $27,000 from her full-time job. That amounts to nearly $9,000 more than the $18,123 federal authorities define as the poverty threshold for a family of three. Yet, dealing with the reality of living costs in Monmouth, she and the kids experience true poverty. She scrimps and cuts corners here and there just to meet her monthly rent and put enough food on the table for a day-to-day battle for bare-bones existence.
She and the kids are struggling for good reason. As the Legal Services study found, the real cost of living for a family of three in Monmouth County is $66,240, which amounts to almost $50,000 more than what the federal government classifies as poverty – and nearly $40,000 more than the family’s income from the mother’s $13-an-hour job.
The same working woman with two small children would need an income of $50,687 in Essex County, $54,709 in Middlesex, $47,344 in Camden, $68,549 in Bergen, $55,038 in Ocean, $45,861 in Hudson, $53,701 in Burlington, $61,820 in Passaic, and $41,262 in Atlantic County.
Legal Services of New Jersey (LSNJ) heads the 47 year-old statewide Legal Services system of seven non-profit corporations providing free legal assistance in civil matters to low-income people in all twenty-one counties. LSNJ created the Poverty Research Institute (PRI) in 1997 to enhance public awareness of poverty’s scope, causes, consequences and remedies. LSNJ believes greater knowledge about poverty will help alleviate some of the legal problems of those living in its grasp, thereby serving LSNJ’s core mission of addressing those legal problems. PRI is the first and only entity exclusively focused on developing and updating information on poverty in the state.
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How to Pay For Nursing Home Costs

How to Pay For Nursing Home Costs


Odds are high that someone in your family will need a nursing home sooner or later. A majority of people over age 65 will require some type of long-term care services during their lifetime, and over 40 percent of people will need a period of care in a nursing home, according to the Centers for Medicare and Medicaid Services. The cost of that care can financially cripple a family. But there are steps you can take—whether a nursing home is needed now, next month, or next decade—to minimize the strain.
Ideally, financial planning for long-term care should occur long before the need arises, says Wendy Boglioli, a spokesperson for insurer Genworth Financial. Long-term care insurance, Medigap, and employer-provided or private health insurance plans can offset the cost of long-term care. But if these policies aren't in place before a major health event occurs, they are usually no longer available to consumers.
If your family's facing imminent need for nursing care and doesn't have an insurance plan for it in place, there are still options to help defray the costs.
Make no mistake: Those costs can be staggering. In 2012, a private room cost an average of $248 daily, or more than $90,500 annually, according to a 2012 survey by MetLife. A semi-private room ran $222 daily, or more than $81,000 per year. And the average nursing home stay is 835 days, or more than two years, according to the government's latest National Nursing Home Survey.
Costs widely vary from person to person, both because of geographical difference in rates and because each resident's length of stay differs. While nearly one in 10 residents age 75 to 84 stays in a nursing home for five or more years, nearly three in 10 residents in that age group stay less than 100 days, the maximum duration covered by Medicare, according to the American Association for Long-Term Care Insurance. Convalescent nursing home care, which follows a major surgery or other hospitalization, is typically short-term and can be covered by Medicare.
"Even if you or your loved one doesn't need care right now, but you think it may be coming, at least look at the costs now and in five years to gauge what the hit will be," says Boglioli.
Medicare
Seniors and their families facing a near-term need for a nursing home should first determine whether Medicare will cover at least a portion of the stay. The Medicare program provides coverage for rehabilitation—but not long-term care. If an individual has spent at least three days in a hospital for medically necessary care, Medicare will pick up the tab for up to 100 days of convalescent care immediately following discharge, as long as the patient goes to a home that's a Medicare-certified skilled nursing facility. Medicare can also help if a long-term nursing home situation looks inevitable but isn't immediately necessary. For as long as the individual is able to stay at home, Medicare can be tapped for up to 35 hours per week of home health services. Medicare covers home health services like intermittent skilled nursing care, physical therapy, speech-language pathology, and occupational therapy for up to 60 days at a time, called an "episode of care."
To secure these funds, individuals must be living at home, not in a nursing home or other long-term care facility, must have their physician approve a plan of care, and must use a Medicare certified agency. If you require help only with personal care, such as meal preparation, bathing, using the bathroom, and dressing, you do not qualify for the Medicare home health benefit. A government-published guide offers details on which home health services Medicare covers.
U.S. News's Best Nursing Homes indicates which nursing homes in each state accept Medicare.
Medicaid
If an individual lacks enough savings to cover the cost of a nursing home—or if the cost of a protracted stay exhausts their assets—they can become eligible for assistance from Medicaid. To qualify for Medicaid, applicants must have minimal assets—no more than $2,000 in cash and cash equivalents such as bonds and IRAs. For married couples, the spouse staying at home may have assets worth an additional $115,920, the annually adjusted Social Security cap for 2013. While some seniors might be tempted to make large financial gifts to their children or grandchildren in order to hasten qualification for Medicaid, doing so within the five years prior to applying for the program could disqualify them from receiving its benefits.
Before applying for Medicaid, seniors who own their home also need to consider the fate of the property. Under federal law, a home is exempt from the asset limits described above, but if the owner dies while receiving Medicaid nursing home benefits, the government can take the house. Families that want to avoid losing a treasured home, therefore, might choose to forgo Medicaid, especially if the applicant's life expectancy is short and relatives have the means to pay anticipated costs out of pocket.
A senior may be able to keep his or her home in the family either by adding a child's name to the deed at least five years before applying for Medicaid, or by setting up an asset-protection trust before applying. This type of trust enables a person or couple to transfer some type of property, such as a home or cash-like assets, to another person to hold and manage for their benefit, says Gabriel Heiser, a Nashville-based lawyer specializing in nursing home law and author of How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets. "This is not a do-it-yourself project, however," he says. He recommends hiring a lawyer to help with the process.
One way to find a qualified lawyer is to call your local bar association and find out which attorneys are teaching seminars on Medicaid planning to other attorneys. The attorney also must be licensed in the same state as the person needing Medicaid assistance because Medicaid laws vary from state to state. The National Academy of Elder Law Attorneys has an online search tool that can help consumers locate a lawyer near them.
Veterans Administration Aid and AttendanceThis benefit program provides up to $1,733 per month to a single veteran who needs nursing home care, or up to $1,114 per month for the care of a veteran's surviving spouse. If a couple includes one spouse who is a veteran and either of them needs a nursing home, they are eligible for as much as $2,054 in monthly assistance. Two veterans married to each other could qualify for up to $2,676 per month. 

Negotiating Long-Term Care CostsMost nursing homes won't lower their rates, which are keyed to the payment levels offered by Medicare and Medicaid. Still, there's sometimes room to negotiate when it comes to long-term care costs. "Sometimes, rather than accept a lower Medicaid rate, a facility will agree to take a lower private pay rate, which is still higher than the Medicaid rate but lower than published private pay rates," says Howard Krooks, president-elect of the National Academy of Elder Law Attorneys. By contrast, assisted living facilities, which don't take Medicare or Medicaid, and home health agencies often face steep competition, so consumers shouldn't be shy about talking prices with these organizations. An assisted living facility with a high vacancy rate or no waiting list may be more willing to negotiate a monthly rate, according to Genworth. If you're considering a home health agency, you may be able to secure a lower hourly or daily rate if you indicate that you're shopping around for the best price.
Relocating the PatientIf a senior who needs long-term care has children, grandchildren, or other relatives residing in a city or state where nursing homes are less expensive, moving the patient could be a good option, Krooks says. A move might not only reduce the cost of care but also make it easier for relatives to check in on the resident. Those deciding whether to move an elderly relative should consider the individual's health and whether moving away from doctors who have an established relationship with the senior could harm his or her care.
Moving an elderly relative to a new location solely to find cheaper care might backfire if it leaves the patient far from family. Relatives could face higher travel expenses when visiting their loved one, offsetting any family savings.
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