When we were younger, our parents took care of us and helped us plan for the future. At some point, most of us may have to do the same for our parents and help them plan for the future. Do you know if your parents have an estate plan? It is not only important to know the answer to this question, but to understand the details associated with the answer. Estate planning plays a crucial role in planning for the future.
Today, let us take a moment to discuss six questions to ask your aging parents to help them plan for the future.
1. Do they have a health care surrogate in place? This is one of the most important questions to ask as you want to ensure that they may be taken care of should they become seriously ill and/or incapacitated.
2. Have your parents chosen a trusted individual to take on the health care surrogate role? Selecting a health care surrogate is a decision that should not be taken lightly because this person will be making the decisions on behalf of your parent should he or she become critically ill. Try to ensure the person that they have chosen is responsible and, of course, of sound mind.
3. Where are the original estate planning documents kept? If the time arrives when your parent dies or becomes incapacitated, do you know where the original estate planning documents are kept? The original will is necessary to commence probate. In fact, if you do not have the original it may be very difficult to probate the estate according to the terms of the missing will.
4. Are your parents’ estate planning documents up-to-date? An estate plan is one of the ways that people ensure their legacy will go on and that the assets that they have chosen for their family can be accessed upon their death. Estate plans should be up to date to reflect current living circumstances and major life events. You can talk to your parents about how they can update their estate plan. An estate plan is a great way to help your parents think ahead, but to be most effective it should be up to date.
5. If your parents have a trust, is it properly funded?If not, it could mean a long and expensive probate before you can have access to their assets. To understand it a little better remember, funding a trust means taking assets that are titled in the individual trust settlor’s name and retitling them into the name of the trust.
6. Is your parent working with an attorney they trust? Having a comprehensive and properly drafted estate plan in place can be crucial to securing the future you want for yourself and your loved ones. Having the right estate planning attorney on your side, who understands your unique situation and can advise you appropriately, can be absolutely critical to proper estate planning.
Our firm is committed to representing your best interests and that of your family. We do this by drafting estate plans that have been crafted to meet your unique needs. For help creating your estate plan or answering any related questions, we are here for you. Contact our office today to schedule a meeting.
Martha W.’s family knew she needed help, and she needed it now. She suffered from several serious medical conditions. As a result, she found it increasingly difficult to carry on with her activities of daily living, like cooking or getting dressed. Martha’s family had never looked into government assistance programs and became confused when they finally did. For example, what’s the difference between Medicare and Medicaid? Let’s look at some of the important benefits offered by each program.
First, the Basics
Both are programs offered and managed by the federal government. Also, both help with medical care.
Medicare is essentially a government health insurance policy that is available to a certain group of qualifying individuals. Workers pay taxes to cover future Medicare costs for themselves and their family members.
Medicaid is more of a public assistance program funded by public tax funds that cover healthcare expenses.
Qualifying for Medicare and Medicaid
The eligibility requirements for these programs are very different. For example, Medicare is generally available for people:
One important difference between the programs is that Medicare eligibility is not income-based, while Medicaid is. Additionally, both Medicare and Medicaid offer benefits with different requirements.
Benefits Provided by Medicare and Medicaid
Both offer more than one program. In fact, Medicaid programs can vary from state to state. We’ll just look at the programs offered by Alabama Medicaid.
Medicare:
Part A (hospital insurance) is premium-free for most people who paid Medicare taxes.
Part B (medical insurance) covers some doctors’ services, outpatient care, medical supplies, and preventive services.
Part D (prescription drug coverage) pays for some prescription drugs.
Medicaid:
Medicaid for Children
Medicaid for Parents and Caretaker Relatives
Medicaid for Pregnant Women
Medicaid for the Elderly and Disabled
Medicaid in the Nursing Home
Breast and Cervical Cancer Program
Plan First Family Planning Program
Help Paying for Medicare Costs
People can apply for either program, depending on their needs.
The Application Process
Applying for Medicare is fairly easy. Just complete an online application. There’s no need to submit documentation.
Contact Bill Miller at 256-251-2137 to schedule an appointment. The attorneys at Miller Estate and Elder Law can explain the difference between Medicare and Medicaid and help your Medicaid application. Even better, we can help you with Medicaid planning to increase your chance of getting Medicaid and keeping as much property as possible. Though our office is located at 818 Leighton Avenue in Anniston, we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
In determing how to pay for long term nursing home care, the first way, and by far the best way, is with long-term care insurance. There are different kinds of long-term care insurance policies out there. Unfortunately, most people do not have long-term care insurance, and they wait too long to get it. By the time they apply for it, they are either too sick, or it is no longer affordable. If you can get a long-term care policy, I would encourage you to do so because it is the best way to pay for care.
Medicaid
The second way to pay for long-term care is through the Medicaid program. The Medicaid program is a federal program that is administered by the states, but it has very strict requirements in order to qualify. An individual cannot have more than $2,000 in non-exempt assets in order to qualify. Most people have way more than $2,000 in assets. If you are married, the rules are a little different, but Medicaid can still be difficult to qualify for.
Out of Pocket
The third way to pay, and what most people are doing, is out of pocket. Right now, nursing home costs in this area are around $7,000 a month. Within 10 years, they will probably be $10,000 a month. Every month, these long-term care costs are due and are eating away at your nest egg at the rate of about $10,000. If you don’t have long-term care insurance and you don’t qualify for Medicaid, then you are going to have to pay out of pocket.
I hope this answers the question about how to pay for long-term care. Our clients are encouraged when told how to minimize out-of-pocket expenses and get qualified for Medicaid more quickly if they don’t have long-term care insurance.
It’s easy to be intimidated by a Medicaid application. You have to provide much information and satisfy many strict regulations. Knowing a little more about the process – especially in the form of tips from experienced people – can really help.
Know What Benefits Are Available
Before starting the whole application process, check out Medicaid’s programs. Do any of the programs meet your needs? Will the services offered meet your individual needs?
For example, Alabama Medicaid covers many services, including:
Dental services, but only for an applicant who receives full Medicaid. Only certain age groups may be eligible.
Doctor Appointments. Medicaid typically pays for 14 visits each year. Will you need more than 14 visits?
Family planning services. Some of the services are only available to men or women over age 21.
Transportation – Ambulance. Medicaid will only pay for transportation when it is medically necessary.
Of course, this list is not complete. Medicaid offers other services with restrictions and limitations, so confirm that you can get the help you need.
Make Sure You Qualify
Talk over your financial situation with your attorney. To qualify for Medicaid, you have to be careful not to exceed income and resource limits. With careful estate and financial planning, you may be able to increase your chances of Medicaid approval.
Get the Application Right the First Time
Probably one of the best ways to have your application denied is to submit incorrect or incomplete paperwork. You will submit quite a few supporting documents, as well as the application itself. In fact, Medicaid expects to review five years of financial data.
Talk to an Experienced Medicaid Attorney
This may be the best way to get your application approved. However, an Alabama Medicaid attorney can do more than get you through the application process. Medicaid planning should begin years before you actually apply for Medicaid. It’s in your best interests to consult with a lawyer as soon as possible.
Contact us at 256-472-1900 for a free consultation. The attorneys at Miller Estate and Elder Law know how to help you with Medicaid planning and with estate recovery concerns.
Also, receive a free download of Medicaid Planning in Alabama: What You Need to Know by clicking here.
For many of us, the time will come when we have no choice but to seek extra attention and care for our spouse. Is it time to consider moving your spouse to a nursing home? This can be a difficult decision as there are many things that you want to protect your spouse from, including abuse and general mistreatment. Even though you may not have a choice but to place him or her in a nursing home, that does not mean that it has to be a horrible experience for either you or your spouse.
First and foremost, you want to ensure that the home you have selected is Medicaid/Medicare approved as this will help you make the best choice financially. Here are a few other things you can add to your checklist to help you make the best decision for your spouse as well as your peace of mind.
1. Ask if residents can have their personal belongings, including furniture, in their rooms. You may also want to find out whether your spouse will have storage space, such as an appropriately sized closet and drawers in the room.
2. Verify amenities provided by the nursing home. Will your spouse have computer and internet access in his or her bedroom? Will there be a television? Will there be a window to provide natural light? Access to these types of comforts can help ease the transition into the nursing home.
3. Inquire about what type of activities the home offers and if the facility helps residents who may not be mobile. Find out if the nursing home has outdoor areas for your spouse to use. You may also want to ask if your spouse will be able to choose what time to get up, go to sleep, or bathe.
4. Look into the support provided for residents with advanced health care needs. For many of us who are struggling with this decision, our spouses may not be in very good health. For example, a common disease that impacts many Older Americans is dementia. If this is the case with your spouse, you may need to know if the nursing home has specific policies and procedures related to the care of residents with dementia. If the facility does, what types of non-medication based approaches do they employ when trying the first attempt to respond to behavioral symptoms for residents living with dementia? What percentage of residents have dementia and are currently being prescribed antipsychotic medication? This can help you to understand the type of residents that your spouse will be surrounded by as well as the home’s workload.
These are just a few tips to help guide you in making a difficult decision and help you to do what is best for your spouse. These kinds of major life changes often come with complicated legal issues. Miller Estate and Elder Law can provide you with guidance to help you make informed decisions on long-term care planning and nursing home issues. Get in touch with our office today to schedule a meeting.
Benefit programs like Medicaid often include strict requirements and rules. To qualify for Medicaid, for example, an applicant must show a financial need by staying below Medicaid’s income and resource limits. However, some people need Medicaid benefits but exceed the amounts Medicaid allows. In this article, we will look at those limits, and, more importantly, how to spend-down your assets and monthly income to meet them.
Medicaid Limits on Income and Resources
A nursing home resident typically can possess no more than $2,000 in resources as of the first day of the month.
However, Medicaid does not count all of your assets and income. Some resources might be considered as countable, including cash, real estate, and one automobile per household. The status of some assets may change in certain situations. For example, real estate held as a life estate or that is on the market may not be counted.
It’s to your benefit to consult with an experienced attorney before applying for Medicaid or attempting any sort of spend-down activities.
Planning a Spend-Down
After learning you may not qualify for Medicaid because of income and asset limits, you may want to plan a spend-down of your assets. But how exactly do you go about doing this? Here are some important considerations:
Where are you living?
Are you married or single?
What is the source of your income?
What type of assets do you have?
The answers to these questions may make a difference in how you spend proceed. Make sure your lawyer has all the information needed to advise you about spending down your assets.
Actions That Spend-Down Your Assets and Monthly Income
After carefully assessing your resources compared to Medicaid’s requirements, you may start taking some of the following steps:
Pay your medical bills. Certain medical bills can be paid to reduce your countable cash assets. In addition to your own, you may be able to pay medical bills for your spouse and your children. You can pay past and current medical expenses, which may include transportation costs, therapists, personal care attendants, home health aides, rehabilitation programs, prescription drugs, and medical equipment ordered by a doctor.
Pay off other debts. You may be eligible to use excess income to reduce mortgage, auto loan, and credit card balances.
Sell certain assets. In some situations, countable assets may be sold to pay off medical bills and debts to reduce a recipient’s resources.
Set up a Miller Trust. Excess monthly income can be diverted to a Miller Trust to stay below Medicaid’s monthly income and resource limits. Funds in the Miller Trust can be used for eligible expenses.
Keep in mind that transferring, selling, or spending assets may result in reductions or delays in benefits.
Spend-Down Your Assets and Monthly Income Wisely
The rules are complicated. Always speak with an experienced attorney before trying any kind of spend-down strategies.
