While Medicare gets most of the news coverage, Medicaid still remains a bit of mystery to many people. The fact is that Medicaid is the largest source for funding nursing home care, but there are many myths about exactly who qualifies for it and what coverage it provides. Here are five myths followed by the real story. Medicare will cover my nursing home expenses. Medicare's coverage of nursing home care is quite limited. Medicare covers only up to 100 days of "skilled nursing care" per illness. To qualify, you must enter a Medicare-approved "skilled nursing facility" or nursing home within…
Seniors dealing with rapidly rising personal medical and nursing home expenses are often dismayed to discover that even modest asset levels may make them ineligible for Medicaid i.e $2,500. Faced with the possibility of spending all their money on health care and leaving nothing for their heirs, they might be tempted to transfer everything they own to their heirs at once, qualify for Medicaid, and move into a nursing home states Forbes. Medicaid’s “look-back” and “transfer penalty” rules are intended to keep Medicaid spending under control by preventing or minimizing asset transfers having the sole purpose of allowing one to…
Under the current Medicaid rules, if you are married and one spouse is in the nursing home, there are ways to protect your marital assets for the well spouse. By reallocating your assets to non-countable assets, none of those assets would have to be spent down on nursing home care before Medicaid starts paying for the care. If you are single and in the nursing home, there are also ways to protect your assets for your loved ones. Although you cannot protect all of your assets as you can with a spouse, you could save about half of your assets…
I’ve written before about the dangers of filing a Medicaid application yourself, without any idea of how the Medicaid rules work. But, in the past month we have had a rash of calls from folks who did just that and ended up with Medicaid penalties – months of Medicaid ineligibility and no way to pay for care. It’s a disturbing trend but it can’t be ignored. The state is taking longer to decide Medicaid applications and is scrutinizing them more than ever. Why? Because it just doesn’t have the money to pay for care. If it can find transfers and…
Many people share a common misconception that Medicaid Planning is not in the best interest of nursing homes. At the same time, many nursing homes are now recognizing that without proper Medicaid planning, some residents who have spent down all of their assets are not automatically qualified for Medicaid…leaving the nursing home with a very large, uncollectible bill. And, as many of you are aware, non-spouse family members are not responsible to pay the nursing home bill for their relative. If the resident is unable to pay and they do not qualify for Medicaid, the nursing home will have a…
There is a tendency to view elder law estate planning as a static process i.e. once done don’t need to do anything more. However,estate planning is rarely a one-time event. Besides accounting for legal changes, the plan must be modified to account for life changes — birth, death, divorce, finances and health. Even the best of plans may be obsolete by the time they are needed, sometimes many years later. At a minimum, an estate plan should be reviewed every three years to see if any life or law changes affect it. Over time, clients may want to change their…
You have worked hard your entire life and have accrued some assets. However, these assets can be at risk if they are not properly protected. There are a number of methods to protect your assets. Therefore, it’s advisable to get expert advice when considering protecting your assets, especially in today’s economy. Here are a few examples of just how you could protect your life’s work: One of the best ways of protecting your assets is by estate planning, through various trusts. Another way to protect your assets is to think about an asset protection plan. There are various provisions in…
Many people think that estate plans are for someone else, not them. They may rationalize that they are too young or don't have enough money to reap the tax benefits of a plan. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth. 1. Loss of capacity. What if you become incompetent and unable to manage your own affairs? Without a plan the courts will select the person to manage your affairs. With a plan, you pick that person (through a power of attorney). 2. Minor children. Who will raise your children…
If you need nursing home care, how will you pay for it? The average cost of nursing home costs can easily exceed $100,000 per year. This makes it a challenge to pay for care, let alone leave an inheritance for future generations. The Medicaid program can provide nursing home coverage – but only if you qualify i.e your assets are below $2,500. Therefore, most people do not have automatic Medicaid eligibility, until all their assets are spent down. Consequently, people need Medicaid Planning. Medicaid Planning involves repositioning assets in accordance with strict rules, so that you meet Medicaid eligibility requirements….
Choosing an executor can be a difficult task, and in no small part this is because it means finding someone you trust to do as you would do. Oftentimes it is gesture of trust and respect made to a friend or family member. Neither the estate planner nor the would-be executor ought to forget, however, that serving as executor can be a fairly difficult role to play. The Wall street Journal recently offered some practical insights and advice on the topic, noting that to be named executor is both “an honor… and a pain.” Simply put, the executor administers a…
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