Medicaid attorneys play a large role in both the Medicaid application process, as well as planning for Medicaid eligibility. Medicaid lawyers, first and foremost, are able to assist Medicaid applicants with the application process, such as filling out the paperwork, providing supporting documentation, and filing the application.
However, based on one’s marital status, financial holdings, and complexity of other relevant factors, it may be best to hire an attorney who specializes in Medicaid in the state in which one resides. Also, as covered above, it is illegal for non-attorneys to do some aspects of Medicaid planning in several states.
If you decide that your situation warrants a lawyer’s help, be sure to look for a certified elder law attorney who has specific education and experience in the area of Medicaid planning for your state.
In these states for these specific services, non-attorney, Medicaid specialists often partner with attorneys to provide services. These states are Florida and Texas and to a lesser extent, New Jersey, Ohio, and Tennessee. Is a Lawyer Needed to get Medicaid? The short and simple answer is no, a lawyer is not needed to get Medicaid.
But the "well" spouse can only have $128,640.00 in countable assets. If the "well" spouse has assets over that amount, Medicaid will not deny care to the nursing home applicant. But, Medicaid will come after the spouse for the cost of care.
A recipient receiving Medicaid home care can keep $904.00 of income each month. Any amount over $90 4.00 is considered “excess income.”. In New York, we can set up a Pooled Income Trust to capture the excess income to pay bills on behalf of the Medicaid recipient.
A Medicaid Asset Protection Trust is an irrevocable grantor trust that allows the Grantor to qualify for Medicaid long term care. The Grantor can retain the right to income, but is not entitled to any principal in the trust. The Grantor can reserve the right to change the Trustee and beneficiaries.
Effective later this year, a look-back period of thirty months (2.5 years) will apply for all transfers made during that period. Prior to this new law, Medicaid planners could make transfers to an irrevocable trust without causing a period of ineligibility.
But the vast majority of American families are unprepared for the financial burden that quality care places on them. In New York, the cost of home health aides has skyrocketed. Ongoing care can cost more than $10,000 per month, and nursing home care upwards of $15,000 per month.
To be eligible, an individual must meet certain asset and income guidelines. Medicaid is a joint federal-state program. It is the single largest payer of nursing home bills in America. For many Americans, it is a last resort option when there is no other way to finance long-term care.
But, Medicaid can recover the cost of services to an individual over the age of 55 from the recipient’s estate. At the time of the Medicaid recipient’s death, if the house is in a trust, the house does not go through probate. This avoids Medicaid having an opportunity to recover against the house.
In-house legal counsels help to ensure that residents are not being taken advantage of financially and that there is someone on site who knows how to handle any potential lawsuits against the long term care provider. As Fox explained on the podcast, the job of an in-house legal counsel is to protect an organization.
Legal counsel is a tremendous help when filling out long term care legal forms.
Failing to comply with federal regulations can lead to lawsuits, but oftentimes it is an unfortunate series of events inside facilities that result in litigation.
In-house counsel gives long term care facilities a great advantage, as these attorneys are informed as to the culture and ongoings of the nursing homes they represent. This means they can help facility owners avoid lawsuits, hefty settlements, and losing their non-profit status.
On the other hand, Medicaid attorneys often focus more on the legal aspects of Medicaid planning, such as creating Medicaid asset protection trusts or Qualified income trusts, which makes them the better option for this type of assistance.
Medicaid attorneys and specialists also assist with crisis planning, which occurs when a senior needs Medicaid benefits within 30-60 days.
This strategy reduces one’s countable assets, while at the same time , protecting some of them for family. Essentially, Medicaid applicants gift approximately half of their “excess” assets (assets over Medicaid’s limit) to their loved ones and then purchase an annuity with the remaining “excess” assets. (An annuity turns countable assets ...
One such strategy that elder law attorneys can implement is a Medicaid asset protection trust (MAPT). This type of trust not only prevents one from becoming ineligible for Medicaid due to gifting assets ...
For persons who have Medicaid cases that are fairly simple and straightforward, a Medicaid planner, also called a Medicaid specialist or a Medicaid Advisor, might be a good option. Working with a professional Medicaid planner can be a lot more cost efficient than working with a Medicaid attorney.
The look back period is 5 years in all states except California (Medi-Cal has a 2.5 year look back).
What Elder Law Attorneys Do? Elder law attorneys, also called elder care attorneys, estate and trust attorneys, or Medicaid lawyers, assist persons in preparing for long-term care and death. They assist seniors in a large and diverse array of legal tasks, which encompasses retirement planning, estate planning, creating wills and durable power ...
The cost of nursing home care has been steadily rising for many years now, to the point where many seniors simply cannot afford to pay those expenses on their own. Across the country, care often costs more than $200 a day – an amount that can cost seniors $80,000 a year or more.
Without the means to cover long-term care costs on their own, seniors are often left in a precarious position. Some can turn to family and friends for assistance, but that’s become an increasingly rare phenomenon. Veterans may be able to obtain assistance through VA benefit programs.
That doesn’t mean that qualifying for Medicaid is easy. For many seniors, it can be a real challenge. The eligibility standards are tough, and many seniors find that they need to make certain adjustments to meet the requirements.
Medicaid planning can be a more effective way to ensure that you’re eligible for the benefits you need when that need arises. A Medicaid attorney can help you with strategies designed to reduce the size of your estate to ensure that you can meet those tough program eligibility standards. For example:
The important thing to remember is that you don’t have to leave yourself open to application difficulties or potential ineligibility penalties. By working with a Medicaid lawyer, you can more effectively manage your application process and ensure that you get the benefits you need to ensure that you have the right type of long-term care.
Do you want your hard earned savings to be spent down on your long term care needs or do you want leave an inheritance for your loved ones? While a non-lawyer can help you process your Medicaid application, he or she cannot advise you on how you can legally protect and preserve your assets for your family. A lawyer that is well versed in Medicaid planning can identify and implement strategies to protect your assets so that not only can you qualify for Medicaid without spending down your assets, but your assets can be preserved for your loved ones. Ultimately, the price of paying for the lawyer’s assistance will be insignificant compared to the high cost of failing to do so.
For example, an individual can obtain Medicaid while owning their home. The idea is that an individual needs to live somewhere when they are getting home care services – they aren’t going to get services on the sidewalk! However, when the individual passes away, or permanently moves to a nursing home, the individual no longer needs to live in their home and before a family can inherit the home, Medicaid can lien the home and demand repayment for the cost of care which may be hundreds of thousands of dollars. While a non-lawyer can assist in the Medicaid application process for an individual, they would not be concerned with protecting the home against any claims that may come much later on. An elder law attorney would review the full picture and advise on ways to protect the home so that Medicaid does not seek repayment from the value of the home.
A good lawyer will devise a personalized Medicaid planning strategy that enables an applicant to retain as much of their wealth as possible for current and future needs while ensuring they will qualify for the long-term care services they require.
A Medicaid lawyer will take all aspects of a senior’s personal and financial situation into consideration to determine when they should apply and whether additional steps must be taken to avoid disqualification for benefits.
Elder law attorneys specialize in helping older adults with long-term care planning, estate planning and government benefits. Those with experience in Medicaid planning understand each state’s rules and regulations and help families by identifying comprehensive strategies to legally obtain and maintain eligibility for public benefits.
In some cases, there are exceptions that can help applicants avoid a Medicaid penalty period. In other situations, applicants who have made disqualifying transfers during the look-back period may be better off delaying their Medicaid application.
Applicants can retain ownership of certain types and amounts of assets while still maintaining their eligibility for benefits. In some instances, a personal care agreement is a great way for a senior to compensate their family caregiver (s) while legally spending down to meet Medicaid asset and income limits.
The financial Medicaid eligibility rules for married couples are different from those for unmarried applicants. An elder law attorney can devise a plan for a married couple to spend down their assets to qualify for long-term care Medicaid but still retain enough resources for the healthy spouse to remain in their home and cover their costs of living.
Of course, an elder’s health and care needs can change a great deal in that timeframe, especially if they have a chronic medical condition like dementia or Parkinson’s disease. It may be wise for some families to look into Medicaid planning even earlier to ensure they’re prepared when the need for long-term care arises.