A Medicaid planning attorney helps clients to sort through the various options, many of which can be quite complex and may affect one senior differently than they do another. Here is a closer look at why it is wise to consult with a lawyer when considering how to pay for care later in life: 1. It Avoids a Conflict of Interest
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Sep 19, 2018 · So, let me quickly give you a few Pros and Cons about using a non-attorney vs an elder law attorney for filing a Medicaid application. PROS: Cheaper than hiring me or another attorney; May be a good choice if the applicant is a single person, with assets below $2000, and income below the cap (currently $2250) CONS:
Feb 20, 2020 · A Medicaid planning attorney helps clients to sort through the various options, many of which can be quite complex and may affect one senior differently than they do another. Here is a closer look at why it is wise to consult with a lawyer when considering how to pay for care later in life: 1. It Avoids a Conflict of Interest. When a senior or their family members is …
Jul 27, 2020 · 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 …
Jun 24, 2019 · Second: The attorney should help the family save money during “spend down” before the application is submitted. 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 …
5 Ways To Protect Your Money from MedicaidAsset protection trust. Asset protection trusts are set up to protect your wealth. ... Income trusts. When you apply for Medicaid, there is a strict limit on your income. ... Promissory notes and private annuities. ... Caregiver Agreement. ... Spousal transfers.Jun 29, 2018
Countable Assets Medicaid programs consider certain assets to be exempt or “non-countable” (usually up to a specific allowable amount). Any cash, savings, investments and property that exceed these limits are considered “countable” assets and will count towards an applicant's $2,000 resource limit.Feb 3, 2022
For example, a single person can have up to $15,750 in resources and still qualify for Medicaid. A family of two can have up to $23,100. For non-disabled individuals under 65 who don't receive nursing home care, there is no limit to the amount of assets they can own; Medicaid simply looks at their income.Mar 25, 2020
Countable assets include cash, bank accounts (checking, money market, savings), vacation houses and property other than one's primary residence, mutual funds, stocks, bonds, and certificates of deposit. In approximately 39 states, 401K's and IRA's are considered countable assets.Dec 14, 2021
Proof of date of birth (e.g., birth certificate) Proof U.S. citizenship or lawful residence (e.g., passport, drivers license, birth certificate, green card, employment authorization card) Proof of all types of income, earned and unearned (e.g., paycheck stubs, retirement benefits, Supplemental Security Income)
Answer: No. Medicaid won't force you out of your house. Your home is an “exempt” resource for the purpose of determining Community Medicaid eligibility.Dec 13, 2017
New York City has tallied its own poverty measure since 2005, set higher than the federal poverty line to account for higher costs of living. In 2019, the threshold was $36,262 in annual income for a household of four, while the federal threshold was $25,926.Jan 3, 2022
A salary of $58,450 or less annually is now considered low income in the New York Metro Area. If you are a single New Yorker earning $58,450 or less per year, you fall under the low income category, according to 2018 estimates released last month by the U.S. Department of Housing (HUD).May 17, 2018
A Medicaid planning attorney helps clients to sort through the various options, many of which can be quite complex and may affect one senior differently than they do another. ...
Here is a closer look at why it is wise to consult with a lawyer when considering how to pay for care later in life: 1. It Avoids a Conflict of Interest. When a senior or their family members is making the decision to enter a nursing home or care facility, they may be required to fill out Medicaid paperwork.
Elder law lawyers work hard to protect the interests of each and every client. With their legal knowledge, they are able to investigate each individual’s situation to determine which safeguards are applicable to them. Accordingly, clients can rest assured that they have done everything they can to protect themselves and their assets as they age.
Protecting Assets. Most people don’t realize that nursing homes may cost $15,000 per month. It’s an outrageous expense, and with people living longer, they are faced with paying this exorbitant amount for years. It’s no wonder so many people lose all of their assets just by paying for ordinary living expenses.
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.
Medicaid attorneys and specialists also assist with crisis planning, which occurs when a senior needs Medicaid benefits within 30-60 days.
What Elder Law Attorneys Do? Elder law attorneys, also called elder care attorneys, estate and trust attorneys, or Medicaid lawyers, assist persons in preparing for long-term care and death. They assist seniors in a large and diverse array of legal tasks, which encompasses retirement planning, estate planning, creating wills and durable power ...
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 ...
The look back period is 5 years in all states except California (Medi-Cal has a 2.5 year look back).
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.
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 ...
An applicant must have assets, also called resources, under a certain amount to qualify for Medicaid. However, being over the asset limit does not mean one cannot qualify for Medicaid benefits. When considering one’s assets, it’s important to be aware that some assets are exempt, or said another way, not counted towards the asset limit. (Further detail is below under Countable Assets and Non-Countable Assets). If one is over the asset limit after considering all non-countable assets, one will have to “spend down” assets in order to meet Medicaid’s asset limit. That said, one needs to proceed with caution when doing so. Medicaid has a look-back period in which all past transfers are reviewed. If one has gifted assets or sold them under fair market value during this timeframe, a period of Medicaid ineligibility will ensue.
One can purchase an annuity, which in simple terms, is a lump sum of cash converted into a monthly income stream for the Medicaid applicant or their spouse. The payments can be for a set period shorter than one’s life expectancy or equal to the beneficiary’s life expectancy. Irrevocable Funeral Trusts.
Asset spend down can be complicated, and if not carefully done, can result in Medicaid ineligibility. For example, gifting assets to family members very commonly results in Medicaid ineligibility or a penalty period.
One can create a formal life care agreement, often referred to as personal care agreement. This type of agreement is generally between an elderly care recipient and a relative or close family friend. It allows the care recipient to spend down their excess assets while receiving needed care.
In very simplified terms, in 50% states, the community spouse can keep up to 50% of the couple’s assets, up to the maximum allowable amount. (As mentioned above, this figure, as of 2021, is $130,380 in most states). There is also a minimum resource allowance, which as of 2021, is $26,076.
Medicaid is referred to by different names in different states. So spend down in California is called “Medi-Cal Spend Down”. In Illinois and other states “Medical Assistance Spend Down”. “Medicare Spend Down” is simply a misnomer. Medicare has no asset limit and therefore Medicare spend down does not exist.
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.
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.
Third: A little known fact is that Michigan has “Medicaid estate recovery.”. That means the government will take the house for repayment after the applicant and spouse dies. This can be a loss form $100,000 to $300,000 and up. Part of the attorney’s work is to make sure the government does not get the house.
What is a Medicaid spenddown? It is a way of becoming eligible for Medicaid despite having too much income to be financially eligible. The amount of income a person or family has over the Medicaid financial eligibility guidelines is called excess income.
It is important to make sure that your doctor or other medical provider accepts Medicaid payments. Medicaid will only pay bills from a doctor, pharmacist, or other provider who accepts Medicaid payments. But medical bills from a provider who does not accept Medicaid may be used to spend down your excess income.
Experts tell us that if you are close to retirement age right now (age 65), you stand close to a 70 percent chance of needing some type of long-term care (LTC) services before the end of your lifetime. If either of you does need LTC, you will quickly realize that the expenses associated with LTC are high.
Transferring assets to avoid the spend-down requirement is not an option because Medicaid also uses a five-year “look-back” rule that prevents such asset transfers. The rule allows Medicaid to review your finances for the 60 month period prior to applying.
Please feel free to download our FREE estate planning worksheet. If you have additional questions or concerns regarding the Medicaid spend-down requirement, contact the Harrison Medicaid attorneys at the Law Offices of Kobrick & Moccia by calling 800-295-1917 to schedule your appointment.