Jun 24, 2018 · Protect your money from medicaid: Estate planning attorney reveals answers to client questions about how to protect their money and their house from nursing home costs, and five year lookback of medicaid liens, separate fact from fiction and learn if your estate could benefit from an asset protection trust
Nov 02, 2021 · Finally, be certain to consult an elder law or estate planning attorney. They will help you understand the best options and strategies for your life stage and assets. Ensure your loved ones and property are protected START MY ESTATE PLAN About the …
Nov 01, 2021 · Elder law attorneys focus on problems and issues that families face as parents or spouses age, says Anthony J. Enea, a CELA in White Plains, New York. “An elder law attorney goes over what kind of care is required and whether the person is able to stay at home or may need long-term care in a nursing home,” says Enea.
Jul 17, 2013 · An elder law attorney can help ease those costs and burdens. This article will discuss three techniques that elder law attorneys use to help families protect themselves against the financial cost of long term care once the need for that care has arisen.
When created for the purpose of protecting assets from being used for nursing home or other long-term care costs, the term "Medicaid trust" may be used to describe this type of irrevocable trust. Compare this with a revocable (or living) trust, which offers no asset protection for Medicaid purposes, because the government considers ...
An irrevocable trust allows you to avoid giving away or spending your assets in order to qualify for Medicaid. Assets placed in an irrevocable trust are no longer legally yours, and you must name an independent trustee. You may choose to designate that the trust assets to pass to your spouse and/or other loved ones after your death. You cannot control the trust's principal, although you may use the assets in the trust during your lifetime.
After a Medicaid recipient dies, in a process called "estate recovery," the government attempts to recover the benefits it had paid out for nursing home care from the decedent's estate. Through proper estate planning, you can minimize the effects of this process on your loved one's inheritances.
Some assets are exempt, which means you can transfer them to others as gifts for little or no compensation without penalty—namely, household goods, personal effects, certain prepaid funeral expenses, and income-producing property, and in some cases, your home and retirement accounts.
With your family home, you may choose to create a life estate so that you keep the right to live in the home until your death as a "life tenant." At your death, the property transfers to your chosen loved one. Through a life estate, you remain in control of the property until your death, at which point the person or people with the "remainder interest" take possession.
The Role of Medicaid. The government-run Medicaid program steps in to cover nursing home costs for low-income individuals, but it is the "payer of last resort.". Eligibility is income-based and, by the time your income qualifies you for these benefits, your assets could be depleted.
Elder law attorneys can identify and alert family members to financial exploitation they might otherwise have missed. When Dad and Mom slow down or their health declines, that gives a bad neighbor the opportunity to come over and start ‘helping out’ or an unscrupulous adult child to obtain access to financial accounts, says Simasko.
According to the National Academy of Elder Law Attorneys, elder law encompasses many fields of law, with elder law attorneys specializing in numerous areas, which can include: Administration and management of estates and trusts. Elder abuse and fraud. Estate planning, probate, trusts, wills and other financial documents.
Families are frequently split on the type of care they want for their parents, says Patrick Simasko, a certified elder law attorney in Mount Clemens, Michigan. However, an elder law attorney can advise what is best without emotions influencing decisions.
An elder law attorney can help ease those costs and burdens. This article will discuss three techniques that elder law attorneys use to help families protect themselves against the financial cost of long term care once the need for that care has arisen. These strategies are just part of the planning arsenal that is available.
It will last for an average of three years. One in five of us will need long term care assistance for five years or more.
That leaves the Medicaid program, America’s health care safety net, as the most significant potential alternative source of long-term care financial assistance for most people. But Medicaid has complicated financial qualification rules that can prevent a long-term care recipient from qualifying for the program.
It’s a particularly unpleasant aspect of aging. We are likely to need long-term care services before we die. By “long- term care” I mean the type of care you need if you have a prolonged physical illness, disability or severe cognitive impairment (such as Alzheimer’s disease) that keeps you from living independently.
operate small business. The attorney-in-fact is obligated to act in the incapacitated person's best interests, maintain accurate records, keep their property separate from the incapacitated person's, and avoid conflicts of interest.
When a Durable Power of Attorney for Finance is created, the individual creating the document is giving another person legal authority to act on their behalf. The person with such authority is called an attorney-in-fact. Individuals can give the attorney-in-fact broad power to handle all their finances. As an example, your loved one can give the attorney-in-fact the power to do some or all of the following: 1 use their assets to pay everyday expenses 2 buy, sell, maintain, pay taxes on, and mortgage real estate and other property 3 collect Social Security, Medicare, or other government benefits 4 invest money in stocks, bonds, and mutual funds 5 handle transactions with banks and other financial institutions 6 buy and sell insurance policies and annuities 7 file and pay taxes 8 operate small business
The person named to make these decisions is usually called an agent or an attorney-in-fact.
A Living Trust, like a Will, is a method by which an individual can designate the distribution of the assets they have at the time of death. Unlike a Will, however, a Living Trust becomes effective as soon as it's executed. This is a very important distinction between the two documents, as it allows for management of the assets held in the Living Trust while the person is still alive, but has become mentally incapacitated to the point they cannot manage their own affairs. Confirmation of incapacity by the person's physician is usually required.
use their assets to pay everyday expenses. buy, sell, maintain, pay taxes on, and mortgage real estate and other property. collect Social Security, Medicare, or other government benefits. invest money in stocks, bonds, and mutual funds. handle transactions with banks and other financial institutions.
If your loved one passes away without having prepared a Will or Living Trust, the estate will be distributed according to the laws of intestate. Simply put, this means the estate will pass to their next of kin, which may not be what was intended or desired. Intestate laws are state-dependent.
It is therefore important for your loved one to document their wishes regarding the distribution of the estate while they are still mentally capable of doing so.
Justice in Aging. Justice in Aging is a legal advocacy organization that pushes for any legislation that will reduce poverty for seniors. They therefore fight for affordable healthcare, greater resources for seniors that are economically disadvantaged, and give a particular focus to the types of seniors that have often been ...
The American Society on Aging is a little different from the other organizations on the list as it’s less focused on influencing public policy, and more focused on providing better education and resources to the professionals that work with seniors.
Legal Advocates for Seniors and People with Disabilities is just what the name says it is – it’s an organization of lawyers that help seniors and people with disabilities with certain legal issues they’re most likely to face.
Medicare fraud costs an estimated $60 billion a year , but much of that could be prevented if Medicare beneficiaries receive proper education. Senior Medicare Patrol funds projects that help educate seniors on common Medicare abuses and respond to any complaints they have about their coverage. SAGE.
NHCOA. The National Hispanic Council on Aging works to advocate for the Hispanic seniors that represent a growing portion of the U.S. senior population.
With more than 5 million seniors suffering from Alzheimer’s, the Alzheimer’s Association advocates for better research, policies, and care for a significant portion of the senior population. They also provide resources and suggestions to people who want to do their part to advocate for Alzheimer’s patients.
They work to keep other government organizations aware of the issues that influence seniors so that legislation affecting the senior population keeps their needs and issues top of mind, and they provide grants to various other organizations that provide direct services and education to seniors. Alzheimer’s Association.
One of the very best ways for elderly Americans to protect their finances is to establish a power of attorney. This means giving a trusted person (again, a family member, friend, or neighbor) authority to manage your financial affairs, including your property, if you are not able to do so yourself -- even temporarily. A power of attorney is different from a will in that it ensures your wishes are followed while you're alive. (A will ensures that your wishes are respected after you've died.) You can also appoint more than one "agent, or "attorney-in-fact" (the legal terms for people who have power of attorney ). Many lawyers recommend this, as it ensures that no single person can act unilaterally when it comes to your money and property, thereby reducing the risk of fraud, theft, and financial mismanagement. You can require that two or more agents make all decisions together regarding your affairs.
Financial abuse of elderly Americans is a serious problem. Up to 6.6% of Americans aged 65 or older have lost money to exploitation, fraud, and theft, according to the Securities and Exchange Commission. The SEC says that "elder financial exploitation is emerging as the most prevalent form of elder abuse" in the United States.
This setup is different from a joint account: A joint account holder shares ownership of a bank account and the money in it. A joint account holder also has the ability to withdraw all funds in a bank account and close it.
An authorized signer should be someone you trust, whether it's an adult family member, neighbor, or friend. Making that trusted person an authorized signer will enable them to keep an eye on what's happening with your bank account and ensure that no single person, including you, makes a large or unusual transaction.
Typically, agents can access bank accounts, manage investments, file tax returns, deal with health insurance, and sell property.
Automating your finances will make it easier to manage them and to track money flowing into and out of your bank accounts. 2. Require an authorized signer. Another way people can protect their finances is by setting up an authorized signer on their bank account.
You can also appoint more than one "agent, or "attorney-in-fact" (the legal terms for people who have power of attorney). Many lawyers recommend this, as it ensures that no single person can act unilaterally when it comes to your money and property, thereby reducing the risk of fraud, theft, and financial mismanagement.
As a life tenant, you retain the right to continue living in your home until your death.
Unlike a living trust, an irrevocable trust is exempt from nursing home costs. You cannot receive principal from the irrevocable trust, but the periodic interest and dividends you receive from the trust are safe from seizure.
Some states, such as Colorado, do not count periodic payouts from annuities when determining Medicaid eligibility. Thus, you can transfer your assets into an annuity and qualify for Medicaid-covered nursing home care without having to spend down your assets. If your state does consider annuity payouts when determining Medicaid eligibility, you can still safely transfer assets into an annuity, but you cannot use Medicaid’s services for a specific period of time following the transfer.
Some specialized elder law attorneys are very familiar with their state’s Medicaid programs and able to work within the laws to produce favorable outcomes for their clients. Bear in mind that every case has its unique facts, and the strategies discussed here may or may not be a good fit for your or your family. It is best to find an attorney who specializes in Medicaid planning in your state and seek a consultation.
But according to the U.S. Department of Health and Human Services, “Someone turning age 65 today has almost a 70 percent chance of needing some type of long-term care services and supports in their remaining years.”.
Medicaid-Planning Strategy #4: A Caregiver Agreement 1 The contract must specifically define the services provided and hours to be worked by the caregiver. 2 The lump sum payment must be calculated using a reasonable life expectancy and legitimate market rates for the services. 3 A daily log of services rendered and hours worked must be maintained, along with written invoices. 4 Upon the death of the patient, any unearned funds must be paid to Medicaid, up to the amount that Medicaid paid on behalf of the patient’s care.
As its name suggests, an asset protection trust is designed to protect one’s wealth. But, if designed correctly, this legal tool can serve other purposes as well. Typically, we think of creating an asset protection trust when someone is planning to apply for Medicaid.
When a trust is properly designed to provide asset protection, the assets transferred to it no longer belong to you. As a result, they are beyond the reach of Medicaid or any other future creditors. That is why this kind of trust is often called a “Medicaid Trust.”.
As a result, the spouse who needs care will immediately be eligible for Medicaid and receive services. Once Medicaid provides services, it has the right to seek contributions from the well spouse. In some cases, however, Medicaid does not pursue its rights, and in other cases it is willing to settle at a discount.
Medicaid-Planning Strategy #2: Income Trusts. When an individual applies for Medicaid, a strict income limit is enforced. If an applicant’s income exceeds this amount, it is considered excess and must be handled appropriately to obtain and maintain Medicaid eligibility.