The short and simple answer is no, a lawyer is not needed to get Medicaid. 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.
To assist a loved one in becoming eligible for Medicaid, maintaining their eligibility and making Medicaid-related benefit decisions, having a power of attorney is extremely important.
For legal purposes, having a durable power of attorney for the person you’re acting as a caregiver for, is beneficial. Even a spouse can’t enroll in a Medicare Supplement plan without the Durable Power of Attorney. If you wish to make healthcare decisions for another person, you’ll need to apply.
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.
Furthermore, the POA can allow family members to pay for Medicaid planning services using their loved one’s income or assets to further help them gain Medicaid eligibility. 4. POAs are also important when it comes to writing checks on behalf of a Medicaid recipient to cover required Medicaid co-payments or share of costs.
Power of Attorney (POA) basics are fairly straightforward. It’s a document where a “principal” or “grantor” (usually an elder) legally names an “agent” or “attorney-in-fact” (typically an adult child) to act on their behalf in medical and/or financial dealings if they are not capable of doing so themselves.
The most common type of POA for those considering Medicaid Long Term Care is a Durable Power of Attorney (DPOA).
POAs do not give the agent (typically an adult child) full control of the life and possessions of the principal (usually an elder parent). Instead, the agent’s powers must be specifically detailed in the wording of the POA document.
The truth is it’s never too early to get a DPOA because the creation of a DPOA does not mean the principal (usually an elder parent) is incompetent, nor does it take away the principal’s rights to make financial, health care or any other kind of decision on their own.
There is no universal DPOA form since the document itself varies by state, but those state-specific forms are usually available to download from the state government website, and there are other generic forms one can download for free.
A durable power of attorney allows an agent to step into the applicant’s shoes as a fiduciary. A comprehensive power of attorney allows the agent to transfer assets, gain eligibility and apply for Medicaid. This is crucial if the applicant has become incapacitated – or cannot easily meet with an attorney. Without giving an agent the authority to do this planning, optimal asset protection may not be possible.
Medicaid will pay the long-term care needs for individuals who meet certain income and asset criteria. This means that Medicaid will pay the high cost of home care or nursing home care for seniors. Since Medicaid is a means tested program, many people believe that they cannot access benefits. This common misconception results in people failing to plan ahead and spending down most of their assets before realizing their mistake. Yet, even with little planning, families can preserve funds by moving assets out of the Medicaid applicant’s name. While everyone’s situation is different, the one irreplaceable document every senior needs is a durable power of attorney.
Finally, the actual Medicaid application and corresponding paperwork needs the Medicaid applicant’s signature. If the applicant is unable to sign the paperwork, an agent under a power of attorney may sign the paperwork on their behalf. Additionally, numerous financial documents must be submitted (i.e. proof of income, tax returns, bank statements). Gathering this information from specific institutions requires a power of attorney granting such authority.
Can you give away your mother’s assets if you are an agent under a power of attorney? Unless the authority was specifically given when the document was created, the answer would be no .
Now that you have some basic information about how Medicaid planning can be relevant to your family, you probably have some detailed questions. This is understandable, and there is definitely a great deal to digest if you want to make sure that your parents get the care that they need toward the end of their lives without losing everything that they have saved in the process.
The Medicare program will not pay for a stay in a nursing home, and this can have a devastating impact financially, because nursing home care is very expensive, and costs have been rising year-by-year.
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.
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 ways in which bank accounts and even real estate are titled can help or hurt an applicant’s Medicaid eligibility as well. Attorneys are well-versed in these and many other legal, medical and financial factors that determine if and when a senior’s application is approved.
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.
The truth is that Medicaid planning is not a do-it-yourself project, and applying for Medicaid long-term care is seldom, if ever, easy. Most people understand the questions on a Medicaid application and how to answer them. However, applicants may not understand the impact of these questions or what the state is really trying to find out by asking them.
It may also be possible for an applicant to reorganize their assets and income in ways that help them continue living in the community for as long as possible but also ensure they will qualify for long-term care Medicaid when they need it. Applicants can retain ownership of certain types and amounts of assets while still maintaining their eligibility for 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.
Seventh: The attorney will represent the client (s) before the Medicaid agency. Many Medicaid workers give clients and families wrong information. We see many mistakes that are not to the client’s benefit. For example, the agency will lose an application and tell the client to re-file with the result of loss of months of coverage. Your attorney will not allow that to happen.
How can the attorney help? He can often avoid the cost and delay of probate court entirely by having the resident knowingly sign a power of attorney.
Spend down means that the applicant has only $2,000 at the time of application. If an average suburban married couple follows the advice of most nursing homes they may spend over $100,000 at the nursing home before applying for Medicaid. The attorney should be able to help an average couple to save that $100,000.
We might note that there are two ways attorneys charge for applications: 1) attorney asks for a retainer and bills hourly against the retainer; 2) a flat fee. Most clients prefer the latter since they know the fixed cost and the fee will be part of “spend down.”.
A Medicaid application will be rejected without “documentation” of the current cash value of the asset. It can take four weeks to get the needed paperwork. When children help elderly parents, finding or recovering the documentation can be challenging and time consuming.
And a bonus, Eighth: The attorney should prevent the applicant/resident from being transferred out of a good nursing home, where he got post-hospital rehab, to a poor one that always has beds open because nobody wants to be there. We have prevented many such transfers and our clients stay at the good nursing home.
So who does and who should hire an attorney? It is the client who has significant savings in various institutions, a home and other “assets.” This person has much to lose. And, the need is doubly true if the client has a spouse. Clients do not hire an attorney to fill out a four to six page application. There is much more to do and much more to the value of the attorney’s work. Here are some considerations:
If you want to be the representative payee for someone on Social Security, go to the local office. At the Social Security office, submit a letter from the recipient’s doctor that states the need for a representative payee. Also, you’ll need to have proof of identity.
Durable Power of Attorney gives financial legal authority to an agent when the principal is either capable or incapable. Conventional Power of Attorney is granted to the agent when the principal is unfit.
The law requires Medicare recipients to write a form permitting them to handle personal medical information. If they can’t give consent, the personal representative can fill out the Authorization to Disclose Personal Health Information.
Yes, Medicare recognizes power of attorney as legal authorization when someone else is acting on behalf of the beneficiary. Does a representative payee have limits? Unless you’re the guardian, you can’t sign a legal document for the beneficiary.
Yet, making healthcare decisions is necessary when if they become incapable. You need an “ advanced directive ” to make medical choices. But, medical choices are different than Medicare or Social Security changes. There are different forms for various changes or decisions you would want to make on behalf of another.
Conventional Power of Attorney is granted to the agent when the principal is unfit. Springing Power of Attorney only occurs when the document is signed, and it stays in effect throughout the principal’s life. An attorney can notarize any documents in your state. Each state has different rules.
An attorney can notarize any documents in your state. Each state has different rules.
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.
After the consultation / planning conference and gathering of the facts and needs, a price for services can be quoted. Medicaid planning fees can range from $3,000 to $12,000.The following factors can all impact the cost the cost of a Medicaid planning engagement. The more complicated the case, the higher the fees.
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 ...
Medicaid attorneys and specialists also assist with crisis planning, which occurs when a senior needs Medicaid benefits within 30-60 days.
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 (if done prior to the look back period), but it also allows one to protect assets for spouses to ensure they can live independently. Furthermore, MAPTs protect assets, including one’s home, for relatives upon the death of the Medicaid recipient, as assets in this type of trust are protected from Medicaid’s estate recovery program. This means that the state cannot attempt to be reimbursed for long term care costs for which it paid for the Medicaid beneficiary via these 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).
An elder law attorney can help with Medicaid Planning by preventing you from unnecessarily spending down assets, offer guidance on how to manage finances to preserve eligibility, and prepare the application on your behalf.
The difference between Medicaid and Medicare is often the biggest source of confusion for the elderly and their families. Medicare is an insurance program for adults 65 years old and over and for certain individuals with serious disabilities. Medicare is available regardless of assets or income but provides extremely limited coverage for long-term nursing home care. Expenses that are not covered by Medicare must be paid out of pocket or through a private long-term care insurance policy. Medicaid , on the other hand, is a joint federal and state program that pays for medical needs such as physician services, hospital care, and long-term care in a nursing home when a person does not have sufficient assets or income to handle these expenses on their own. Eligibility for Medicaid is determined independently in each state and while the basic eligibility standards are the same throughout the United States, there are differences state-by-state.