by Bill Miller | Feb 4, 2019 | Medicaid Planning
Steve realized his father, Hank, needed help. Still, he was surprised when a doctor told him that Hank needed 24/7 nursing care. As he looked for a nursing home, he was surprised at the cost and unsure of how his father would pay for it. Someone suggested he check into Medicaid. Steve checked the Alabama Medicaid website, but was dismayed to learn his father’s income was just a little too high. Fortunately, someone suggested he see a Medicaid planning attorney to ask about Miller Trusts.
Medicaid Eligibility
When someone applies for Medicaid benefits, a caseworker reviews their application and supporting documents to make sure they are eligible. In particular, they look at income and resources.
To qualify for Medicaid, an individual’s monthly income must be no more than $2,205. The individual’s resource limit must be $2,000 or less on the first day of each month.
These limitations are important to know. For example, if Hank’s income is $2,500 a month, he may be denied Medicaid benefits. Fortunately, there may be a solution to Hank’s problem with excess income.
Where a Miller Trust Might Help
Medicaid applicant’s, or their families, may need to find a legal way to reduce the applicant’s monthly income. This often is accomplished through a Miller trust.
All trusts have a grantor, trustee, and at least one beneficiary. Trusts are also funded with money or other assets.
With a Miller Trust, a Medicaid applicant or recipient deposits their monthly income in excess of Medicaid limits into the trust. The amount deposited no longer counts against the benefit recipient.
With Hank, he makes almost $300 a month more than the Medicaid income limit. He may be able to open a Miller trust, then deposit $300 a month into the trust.
The trustee can use funds from the Miller trust to pay the recipient’s expenses.
Setting a Trust Is Tricky
The attorneys at Miller Estate and Elder Law use their experience and knowledge of trusts to help clients make informed decisions. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Although we’re located in Anniston and Birmingham, we also help clients in the Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Feb 4, 2019 | Medicaid, Medicaid Qualification
Everything seemed to happen in a split second. One minute, 88-year old Mary Elizabeth was living at home and appeared able to care for herself. Then her son, Jason, received a call from the emergency room. Mary Elizabeth had suffered a devastating stroke and needed the kind of 24/7 nursing care best offered in a nursing home. She moved immediately from the hospital to a nursing facility, but financing her stay was a problem. Jason quickly learned about Nursing Home Medicaid Qualification and how quickly he could get her eligible.
The Basics of Nursing Home Medicaid Qualification
We’ve all heard of Medicaid, but may not understand the finer points of applying, qualifying, and finding the services we need.
Medicaid is federally funded, but state managed. Programs and eligibility requirements may vary from state to state. Alabama Medicaid offers a program for Institutional Medicaid – or Medicaid for nursing home residents.
Qualifying as a Nursing Home Resident
For Jason to get Medicaid for Mary Elizabeth, she has to meet the following criteria:
- Mary Elizabeth must be a U.S. citizen residing in Alabama.
- She must prove that her nursing care is needed for a medical condition.
- Mary Elizabeth must live in the nursing facility for at least 30 continuous days.
- She must have a monthly income below the current limit of $2,205 per month, although this amount may be adjusted in January of each year.
- Mary Elizabeth’s resources must be worth less than the limit Medicaid sets. At this time, the limit for an individual is $2,000. However, there are exceptions to this, particularly if the applicant is married.
But applying for government benefits can take months. Mary Elizabeth and Jason urgently need Medicaid coverage now.
Emergency Medicaid
It can take 45 to 90 days for a Medicaid application to be approved. However, Medicaid coverage may be granted to cover up to three months before the month in which the application was submitted. This applies if the applicant received medical care and if the applicant meets all other eligibility requirements.
One of the biggest obstacles to getting Medicaid immediately is that most people have more than $2,000 and are therefore “over resourced”. Medicaid requires that an applicant spend down their assets to $2,000 before they can qualify. There are planning strategies to protect some of your assets and still get qualified for Medicaid immediately.
Get a Decision on Medicaid as soon as Possible.
At Miller Estate and Elder Law, we work with families everyday who have loved ones in or going to a nursing home. We know the rules for Nursing Home Medicaid qualification. We can get you qualified quickly. Contact us at 256-251-2137 to schedule an appointment. We have offices in Birmingham and we have a new office located at 818 Leighton Avenue in Anniston. We serve clients in Gadsden, Hoover, Talladega, Oxford, Jacksonville, Vestavia Hills, and surrounding areas.
by Bill Miller | Jan 21, 2019 | Estate Planning, Uncategorized
A Trustworthy Person Standing in Your Shoes Right Now
Michael was having a wonderful time in Florida while he waited for his Alabama house to close. Unfortunately, he took a bad fall and ended up in a Florida hospital. He had his Alabama power of attorney, but the problem was that it was a springing power of attorney. The powers were only effective if Michael lost capacity. Michael’s capacity was fine, it’s just that he wasn’t in Alabama when an offer on the house came through.
Power of Attorney
A power of attorney is a legal document that allows someone else to stand in your shoes. It allows them to speak and act on your behalf. A document that is effective immediately – even if you’re perfectly capable of managing your own affairs at the time – is the better choice in most cases. Michael should have designated an Alabama agent with immediate powers. The document should be comprehensive enough to authorize the agent to conduct real-estate transactions on Michael’s behalf.
A document like Michael’s, however, that “springs” into life only on incapacity, would not serve him as he needed. And even if Michael had lost capacity, a doctor would still have to certify that he could no longer make his own decisions. This would cause delay and uncertainty, when swift action was required instead.
Get a Trustworthy Person to be Your POA
Many are concerned that if they have a power of attorney that is immediately effective, their agent will abuse privileges that aren’t even needed at the time. This is a sign, however, that they don’t trust that person. And after all, it’s better to be alert and aware if such a thing should happen, instead of discovering the problem only when you’ve lost capacity and it’s too late. Making sure to name a trustworthy person to serve as power of attorney is often better that using a spring power of attorney.
An experienced attorney can help you find your way through many such pitfalls. Please give us a call at 256 251-2137 to learn how we can help. You can also learn more about powers of attorney and other estate planning documents by getting a free copy of our book – The Basics of Estate Planning in Alabama by at www.AlabamaEstatePlanningGuide.com.
by Bill Miller | Dec 5, 2018 | Probate
Ella passed away while living in New York, but she owned several rental properties in Alabama. Jesse lived and died in Texas but docked his fishing boat in Alabama. Ella and Jesse have something in common: their estates will have to file ancillary probate in Alabama.
What Is Ancillary Probate?
When someone dies, their estate goes through probate in the state they were living in at the time of death. However, many people own property in more than one state. That’s where ancillary probate comes in. It’s a probate proceeding held in addition to the original proceeding.
How Does Probate Work?
The personal representative files the decedent’s Will to start the probate. If there’s no Will, an interested person files an application to be appointed administrator. The court appoints the personal representative, who begins to gather the decedent’s assets and claims against the estate. At the end of the probate proceeding, the personal representative distributes the decedent’s probate assets (after paying valid claims) to beneficiaries according to the Will.
Why Is Ancillary Probate in Alabama Necessary?
The probate court in the home state has no jurisdiction over property found in other jurisdictions. Depending on the assets and how they were held, the estate may have to file additional probate proceedings to dispose of property in the state in which the decedent did not reside.
For example, using the example above, Ella’s estate will be probated in New York. She lived there and it was probably her state of domicile. After her personal representative originates probate in New York, he or she will file for ancillary probate in Alabama to deal with the transfer of her Alabama property.
Can Ancillary Probate Be Avoided?
Sometimes. For example, had a revocable living trust owned the property that became probate estate assets, it probably would have transferred to heirs automatically after the grantor of the trust passed away.
Likewise, property may be titled in such a way that it does not become a probate asset. Jointly owned property may pass directly to the surviving owner without the need for probate.
Probate, trust and property ownership laws are complicated. Talk to an attorney as soon as possible if ancillary probate is needed, or if you want your family to avoid having to file an ancillary proceeding.
Learn More About Ancillary Probate in Alabama.
The attorneys at Miller Estate and Elder Law know how to help you with estate planning and probate, whether it’s an original proceeding or an ancillary proceeding. For a free consultation, contact us at 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Nov 29, 2018 | Estate Planning, Probate
One of the many benefits associated with estate planning is that you get to choose who gets your stuff after you are gone. However, that generally only works if you have actually done an estate plan! Someone who passes away without leaving a valid Alabama Will has lost the opportunity to voice their final wishes. Don’t let the state use Alabama intestacy succession to choose your heirs. A simple Will or trust lets you make all the decisions beforehand.
Intestacy and Probate
Someone who dies without leaving a valid Will is called “intestate.” Whether there’s a Will or not, the deceased person’s estate still has to pass through probate in most cases. However, depending on the size of the estate and family circumstances, probating an intestate person’s estate can be more complicated and more expensive when there’s no Will.
And your probate assets will be distributed according to state law, not the way you would have wanted.
Alabama Intestacy Succession Law
Property in an intestate estate pass to heirs based on Alabama law. Two of the factors that determine “who gets what” are:
- Whether the decedent was married, and
- Whether the decedent had any descendants.
Intestacy succession in Alabama provides for the estate’s distribution as follows:
| If decedent is survived by: |
Then probate assets pass: |
| a spouse, but no children |
entirely to spouse |
| a spouse, no children, parent or parents |
first $100,000 to spouse, then one-half of the rest |
| a spouse, children of decedent and spouse |
first $50,000 to spouse, plus one-half of the balance |
| a spouse, children of decedent but not surviving spouse |
one-half of the estate to the spouse |
| children of decedent |
in an amount based on degree of kinship to decedent |
| parents, but no spouse or children |
equally to the parents |
| no spouse, children, or parents |
to other children of parents (siblings) |
| no spouse, children, parents, or siblings |
to grandparents or children of grandparents based on degree of kinship. |
Not Having a Will Just Makes Everything More Complicated
Intestacy succession does not apply only when the deceased person didn’t leave a valid Will. In fact, a decedent’s probate assets that are not addressed in the Will may pass to heirs according to intestacy succession laws. It pays to make sure your Will is valid and up to date.
At Miller Estate and Elder Law, we make it our business to put our client’s needs first. We assist our clients in making legal decisions regarding their business interests. contact us at 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in Leeds, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
