by Bill Miller | May 15, 2020 | Blog, Long-Term Care, trust
According to LongTermCare.gov, almost 70% of people who are 65 years of age at this time will need long-term care at some point in their lives. Such care is expensive and could deplete a lifetime of savings in just a few years. People may be able to both pay for their long-term care and leave money for their heirs by establishing trusts for long-term care planning.
Medicaid Requirements
Many people hope that Medicaid will pay for their long-term care. However, Medicaid only pays for people with limited income and few resources. Applying can be difficult as applicants are required to submit numerous supporting documents.
Another important thing to remember is the Medicaid 60-month look back period. Medicaid reviews an applicant’s financial records for the 60 months before the date of application. Financial transactions made during that time, including transfers to a trust, may cause a delay or reduction in benefits. That’s one reason it’s important to start planning now. A trust may be in your future.
Irrevocable Trusts for Long-Term Care Planning
Please note that there are two general types of trusts: revocable and irrevocable. Revocable living trusts are common. However, they typically do not provide any kind of asset protection and are not helpful for long-term care planning.
Instead, consider establishing an irrevocable trust. This type of trust transfers control of the grantor’s assets to a trustee. In effect, the grantor no longer owns the trust assets. Medicaid generally does not count the funds in an applicant’s irrevocable trust toward the applicant’s resource or income requirements.
Plan Ahead to Pay for Long-Term Care
We don’t know what the future holds or how long it will be until we need long-term care. To prepare for your future, talk to an attorney about trusts for long-term care planning today.
The attorneys at Miller Estate and Elder Law assist their clients with Medicaid and long-term care planning, as well as general estate planning. Contact Bill Miller at 256-251-2137 to schedule an appointment. Though our office is now located at 818 Leighton Avenue in Anniston, we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
Also, download a copy of our free e-book, Don’t Go Broke Paying for Long-Term Care, by clicking here.
by Bill Miller | May 4, 2020 | Blog, Elder Law, Uncategorized
Did you know May is National Elder Law Month? This month holds special importance to us as we support all Alabama seniors, their loved ones, and their caregivers. We know that you and your family may need extra help not only this month, but throughout the year. One of our goals as a firm is to ensure that you are protected in all circumstances. We want to ensure that you have the help, guidance, and resources you need now, and throughout the year.
Unfortunately, many Alabama seniors and their loved ones have only taken the step to complete their estate planning. While estate planning is essential, it is not elder law planning. Estate planning contemplates both lifetime and end-of-life decisions. For example, you can make a document such as a durable power of attorney that can ensure that you have a decision maker with legal authority in place in the event you cannot make decisions for yourself. Or, by contrast, you could make a last will and testament that directs who should inherit from you at the time of your passing.
The same tools, however, do not necessarily protect you by addressing elder law concerns. Elder law, sometimes referred to as elder care law, is a relatively new area of law. It primarily addresses the issues that can arise as a result of the aging process. For example, should you need long-term care:
- How will you find the right care for you?
- How do you know what to look for?
- Can the services you need be provided in your home?
- Further, if you were to need to move to a long-term care facility, would you be able to pay for it?
Many of us do not have unlimited resources. This means, without elder law planning, we would be at risk of losing all of our assets and impoverishing our loved ones if we had to pay for the high cost of nursing home care without assistance.
We know these may be considerations that you have never thought of before. This National Elder Law Month, let us take a moment and share information on three critical areas addressed through elder law planning that you need to know for yourself and your family.
1. Alabama Medicaid. Medicaid is a combination of state and federal dollars that you may be able to access to help you pay for the cost of long-term care. Know that Medicaid is not Medicare. While all seniors are eligible for Medicare this is not the same thing for Medicaid. Medicare is a health care program that can help most seniors defray the cost of acute medical care. Medicaid, by contrast, is an eligibility program that can help pay for custodial care in a nursing home. You must qualify through a health, income, and asset test to be able to access these valuable resources, which we can discuss with you in a consultation at our firm.
2. Family Caregivers. Family caregivers are the unsung heroes in America. Family caregivers are often under-appreciated and unpaid for the services that they provide. Further, without the guidance of an elder law attorney, you may be paying your family caregiver for his or her much-needed help, but jeopardizing your ability to access the benefits of the Medicaid program. This is one of the things that we can discuss in a meeting at our office. The most important thing is for you to know that you are not alone. You can click this link to learn more about how to best manage this new responsibility in your life and how to help yourself and the aging senior you are caring for.
3. Veterans Affairs Pension Benefits. For wartime veterans and their dependents, there are additional benefits available through the department of Veterans Affairs. One such benefit is the pension program. This is a monthly, tax-free benefit that is available to qualifying Alabama seniors. Similar to Medicaid, there is a health, income, and asset test as well.
We know this article may raise more questions than it answers. We encourage you not to wait to learn more about the benefits and resources available to Alabama seniors now, or at any point in the future. Do not wait to schedule a meeting with attorney Bill Miller to discuss your questions and learn how to protect yourself and your family.
by Bill Miller | May 1, 2020 | Medicaid, Medicaid Qualification
Will Medicaid Take My Home?
Will Medicaid take my home or will Medicaid take my house are two of the most common questions I get when someone is entering the nursing home and trying to qualify for Medicaid. This is understandable since people’s homes are obviously very important to them. Many times, the home is a persons most valuable asset. They do not want to lose their home if they apply for Medicaid and have to go into a nursing home to pay for their long term care costs.
Medicaid Does Not Actually Take Anything
It is important to understand that Medicaid does not actually take anything from a person who applies for Medicaid. Medicaid will just not pay unless you have spent all of your assets down to a certain amount. Medicaid has asset limits and will not pay if you have more than the limit. A single individual cannot have more than $2,000 in assets; a married person who is not going into the nursing home can keep one half of the total assets up to $128,420. Because of the assets limits, it is not uncommon for people to wonder will medicaid take my home.
Will Medicaid Take Your Home – No, but They Will Put a Lien on It
If you are married and your spouse continues to reside in the home, the home is exempt and you could qualify for Medicaid with no risk to your home. If you are single, on the other hand, you can still qualify for Medicaid, even you have a house, but Medicaid is going to put a lien on the home for any amount of money that they pay on your behalf. Then, when you pass away, Medicaid is entitled to be reimbursed for any amount of money they have paid for your care. The problem is that often the Medicaid lien will exceed the value of your home when you pass away. If so, then your family would not get any money from your home. There are ways to protect your home, but it takes advanced planning. If you have asked yourself “Will Medicaid Take my Home” you are not alone. This is a common concern for someone entering the nursing home.
We have helped many families protect their homes and other assets. Let us help you – call us today at 256 251-2137.
by Bill Miller | Apr 14, 2020 | Medicaid, Nursing Home
Giving Away Assets to Qualify for Medicaid
Giving away assets to qualify for Medicaid is a strategy that many people use when they are concerned that they might be going into a nursing home because they think it will help them qualify for Medicaid more quickly. Unfortunately, giving away assets usually involves way more risks and harm than good.
Medicaid has a 60 Month Look Back
Medicaid has a 60 month look back from the time you file your Medicaid application. Therefore, if you’ve given away any assets within the 60 months prior to filing your application, Medicaid is going to penalize you for those giveaways and you won’t qualify. The penalty is based on how much money you gave away during the 60 months prior to the application. The penalty is calculated by taking the amount given away and dividing that by a monthly divisor which is set by Medicaid each year. For example, if you have given away $64,000 within the past 60 months and the Medicaid penalty divisor is $6,400, Medicaid will impose a 60 month penalty.
There are More Risks Than Rewards When You Give Assets Away
The other problem with giving away assets is that once you give them away you no longer have control over them. Whoever you give the assets to has potential creditors and predators and your assets are now subject to those creditors. Most people say well, my son or my daughter would never do anything with my assets. However, what if they get sued? What if they get a divorce? What if they have to file bankruptcy?
Once you give your assets away to that person, then your assets are now subject to their bankruptcy filings, divorces, lawsuits, etc. I’ve seen more people than I can count unfortunately who used this strategy and had to go into a nursing home and the assets were no longer there and they couldn’t get the care that they needed. While there are strategies to protect assets from long term care costs, giving them away to relatives is not something that I recommend. There are better ways to accomplish the same objective without the risks.
To learn more, get a copy of our guide Medicaid in Alabama – What You Need to Know. You can also give us call at 256 251-2137.
by Bill Miller | Apr 6, 2020 | Blog, Estate Planning, Long-Term Care
Long-term care, should you require it as you age, is a significant expense. Depending on where you live, the cost of a skilled nursing home can be well over $100,000 a year or more, and this is for a semi-private room. Medicare only pays under certain circumstances and in limited amounts, which surprises most Older Americans and their loved ones to learn. Further, if you have savings and investments, you might not qualify for the public benefits programs that can help you pay for the care you need such as the Alabama Medicaid program.
If you have not thought too much about long-term care, you are certainly not alone. Even if you are well-off enough to think you do not really need to put money aside for such costs, you do not know what is going to happen in the future, and most families cannot accurately predict how much it is going to cost.
A study published by the Department of Health and Human Services shares that 48 percent of all Americans over the age of 65 will need long-term care outside the home for up to one year. Nineteen percent will need it for up to 24 months, and more than 21 percent between two and five years.
For most of us, we want to create an estate plan that is focused on two main aspects:
- Lifetime protection, which safeguards you and your assets should you be in a crisis and need a decision maker with legal authority to act.
- Creating a legacy that will live on with your family members after you pass.
There are many ways you can start to address long-term care needs in your estate plan when you work with an elder law attorney. Your elder law attorney can provide a comprehensive strategy that addresses all of your health and legal needs, assuring you of the best possible care and protection should you need it. Long-term care planning can be incorporated into your overall estate plan so that it includes lifetime protections that contemplate a potential need for custodial care when you discuss your concerns with your attorney.
When we are healthy and in our prime, we do not often think about the big “what ifs.” Long-term care, as well as the threat of critical illness, is generally the last thing on our minds, even if we already have an estate plan in place. Most people think of estate planning as something that settles your affairs after you are gone, but know that it can also help you live better in life. Estate plans that consider long-term care will protect your assets and can ensure your legacy is intact should you need to be in a nursing home for any length of time.
We know this blog may raise more questions than it answers. Do not wait to contact our law practice to schedule a meeting to discuss your concerns today, or any time in the future.
