Nov
23
2015
0

Watch Out For This Scam Regarding Recorded Deeds

As part of our estate and long-term care planning practice, we regularly prepare deeds for our clients. These deeds can for instance transfer real property into or out of trusts, or between individuals. We send the executed and acknowledged deeds to the recorder’s office along with the required preliminary change of ownership reports. Thereafter, within a fairly short period of time, we receive a confirmation of the recorded deed information from the recorder’s office. The original deed is thereafter returned to the client from the recorder’s office, which can take  several weeks.

Beware of companies that send an official looking notice to you in the mail, which requests a fee from you in exchange for them sending a copy of the recorded deed to you. These companies apparently comb the county records for recently recorded deeds, make copies of them, and then offer to send the deed to you for a fee. If you receive such a notice, do not pay the fee, and give our office a call. We will probably have the recording information by that time if you need it, and the original recorded deed will be sent to you from the recorder in good time, for no fee. Remember, you have already paid a fee to the recorder so that they would record the deed.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
12
2015
0

2015 CA Medi-Cal Quick Reference Guide

The State of California has changed some of the Medi-Cal qualification figures and requirements for 2015. A brief listing of these changes and requirements is set forth below:

Community Spouse Resource Allowance (CSRA)

$119,220

This is the amount that the community, or (at home) well spouse can retain in liquid assets. This amount does not include exempt assets, such as the home and qualified accounts, such as IRA’s.

Minimum Monthly Maintenance Needs Allowance (MMMNA)

$2,981

This is the minimum amount of income the well spouse can keep.

Average Private Pay Rate – Divestment Penalty Divisor – (APPR)

$7,628

This is the amount the State pays to nursing homes on the Medi-Cal program, minus a share of cost by the applicant. This figure is also used to calculate penalty periods of ineligibility for Medi-Cal.

Applicant Resource Allowance

$2,000

The applicant can keep this amount in cash, checking, etc.

Monthly Personal Needs Allowance

$35

The amount of income the ill person is allowed to keep.


Jan
02
2015
0

Treatment of The Home With Reverse Mortgages By Medi-Cal

Under the Medi-Cal regulations, it is fairly easy for us to establish the home as an “exempt asset” for qualification for Medi-Cal. The usual way is to confirm “an intent to return home” by the Medi-Cal applicant. The next task is to protect the home from a Medi-Cal lien if you pass away after having been on Medi-Cal. If you die after having been on Medi-Cal, and you are still on title to the home, Medi-Cal can put a lien on your home to recover the payments they have made to the nursing home. If you are not on title to the home when you die, Medi-Cal cannot pursue recoupment against your home. After we confirm the home as an “exempt asset”, we can transfer the home to another person without penalty under the Medi-Cal regulations. You can always transfer the home to your spouse without penalty. The goal is to keep the home as a legacy in your estate without it going to the state.

If you have a reverse mortgage on your home, it may become difficult for you to transfer title of the home to another person without triggering the due on transfer clause under the mortgage. This means that the loan could be due and payable upon the transfer. Also, if you go into a nursing home for an extended period of time, the reverse mortgage can become due and payable, and the home could be sold under the terms of the reverse mortgage. Any proceeds from the sale that you realize may make you ineligible for Medi-Cal benefits.

A reverse mortgage on your home is sometimes a good option for the older person. However, please keep in mind that it may not be such a good option if you could go into a nursing home in the foreseeable future. You should seek the advice of your elder law attorney for a full discussion of protecting the home, before committing to a reverse mortgage.

For additional information, you can contact your elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the law offices of Michael J. Young, 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA http://www.WalnutCreekElderLaw.com, 925-256-0298,lawyoung1@gmail.com, we practice elder law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with Sustainable Estate Planning TM, long term care planning, asset protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order to help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension Benefit.

Jun
09
2014
0

How To Convert Your Life Insurance Policy To Help Pay For The Cost of Senior Care

Some of our clients have asked whether they should let their life insurance premiums lapse, as part of budgeting for the cost of care for their loved one. Many of our clients have been making premium payments on their life insurance policies for a long period of time.

My answer is to first find out whether their life insurance policy has a value that can be converted to a long term care benefit. As part of the process, we present a copy of the policy to a Life Care Funding Company along with a simple application. The company underwriters will determine whether they will make a cash offer to you for the purchase of the policy. If they make such an offer and you accept it, the cash is then placed into a benefit account that is professionally administered by the company.

 Payments from the benefit account are then made monthly to the care providers for the benefit of the individual receiving care. Payments can be made for instance to assisted living communities, nursing homes, retirement communities and home health care providers.  

Once the life insurance policy is converted to a long term care benefit, you will no longer make premium payments to keep the life insurance policy in effect.

For additional information, you can contact elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

May
20
2014
0

Hiring Home Health Aides:

As part of the Elder Care Journey as we call it, many of our clients will eventually need in-home-care. Our clients want to stay at home but will need help with various activities of daily living, such as eating, bathing, dressing, ambulating and toileting. In fact, our estate planning documents usually confirm an intent to remain home for care for our clients, and an intent to return home after a stay in a skilled nursing facility. The issue then becomes whether you should hire the in-home-care aide through a home care agency or should you hire the aide directly.

Please keep in mind that the aide who will be helping your Mother for instance, will be coming into your Mother’s home, and will be left alone in the home with her for long periods of time. You should avoid risks regarding the aide as best as you can. Health Care Agencies pre-qualify their aides, and do background checks before hiring. Their aides are also bonded. Most of our clients and their families maintain a better comfort level and peace of mind when they hire an aide through a health care agency.

With regard to proof of spending issues for qualification for Medi-Cal and the VA Aid & Attendance Pension Benefit, the fact that you are using an agency creates a much smoother application process. The agreement you have with the agency and proof of payment to them is usually sufficient proof for Medi-Cal and VA. When cash payments are made to an individual, who may also be undocumented, it is much more difficult to obtain these benefits.

Another issue to be concerned with is the IRS and who does the tax reporting and wage withholding for wages paid to the aide. If you are hiring an aide through an agency, you do not face these additional issues. I am not sure that the IRS would become involved, but you have enough to worry about, dealing with the issues of being older and needing care, without worrying about the IRS.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Apr
17
2014
0

Special Needs Trusts For Children

A number of our clients have “special needs” children who are presently receiving public benefits such as Supplemental Security Income and Medi-Cal. Other clients have “special needs” children who may need public benefits later in life. These public benefit programs have asset limits. Many times the children who are receiving public benefits become settled in their lifestyles regarding their living arrangements and working requirements. They usually do not want to lose these benefits and have their lifestyles disrupted by receiving an inheritance when their parents or grand parents pass away.

The parents and grandparents want to preserve the family wealth for all of their children and grandchildren, and do not want to disinherit a child. There is a remedy for this problem, and that is the creation of a supplemental special needs trust. This trust is written into the revocable living trust of the parents or grandparents as part of their estate plan. The share of the inheritance for the special needs child will go into the supplemental special needs trust upon the passing of the parents or grand parents for the benefit of the special needs child.

The overall goal of the supplemental special needs trust is to provide for the needs of the special needs child that are not being met by government benefits. The life of the special needs child can be enhanced by providing for better care, supplemental medical needs, supplemental therapies, recreational opportunities and other living enhancements. The wealth of the family can thereby be preserved, and when the special needs child passes away, his or her share of the inheritance can go to his children or to other family members.

The language in the supplemental special needs trust must be very specific in order for the child to keep the public benefits and yet benefit from the trust. First, the child must not be the trustee, and may not have legal access to the funds in the trust. Another person must be named as trustee. The terms of the trust direct that any distributions from the trust must be in compliance with the Supplemental Security Income, Medi-Cal or other government benefits regulations, so that benefits are not disrupted. The trust must also be drafted in such a way as to avoid any recoupment by Medi-Cal after the special needs child passes away. Your Walnut Creek Elder Law Attorney can advise you and help you in the preparation of a supplemental special needs trust.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Mar
25
2014
0

Consider Naming a Professional Fiduciary In Your Estate Planning Documents

When we prepare our estate planning documents, such as the Revocable Living Trust and Financial Durable Powers of Attorney, we typically name our spouses and then our children as our fiduciaries if we cannot act for ourselves. It would seem that the most common reason that would cause a fiduciary to act is the loss of mental capacity of the principal. For instance, in the case of a Revocable Living Trust for a husband and wife, they will name each other as a co-trustees. If neither of them can act because of incapacity, the children who have been named as successor trustees, will step up to act as trustee. With a Financial Durable Power of attorney, the couple will typically name each other as attorney in fact, and if they cannot act for each other, the children who have been named as successor attorneys in fact, will step up to act.

Many of our clients however do not have a living spouse or children or even siblings who can be named as fiduciaries for them. In addition, statistics show that at lease a quarter of persons in the  age group of 80 years or older, have significant clinical cognitive impairment. These individuals will need a responsible fiduciary to help manage and preserve their assets for them, and to help ensure that they receive good care as they age.

So for people who really have no one to name as a fiduciary in their estate planning documents, we recommend naming a professional fiduciary. These individuals are licensed by the State of California Professional Fiduciaries Bureau.  A professional fiduciary as successor trustee of a revocable living trust for instance, will carry out the terms of the trust while you are alive, and then finish the trust administration when you die.  During your lifetime, the professional fiduciary as successor trustee under your trust, or as your attorney in fact under your financial power of attorney,  will manage your checking account, pay your bills and otherwise help to protect your assets. They will make sure that your assets are used for your care and that your assets are preserved and managed for as long as possible. Many older people are vulnerable to scammers and even family members who will try to take advantage of them, and take their money.

We can recommend several very good professional fiduciaries who you could consider naming as successor fiduciaries  in your estate planning documents.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
20
2014
0

7 Practical Considerations To Take Into Account When Choosing an Assisted Living Facility

Here are 7 Practical Considerations to take into account when you are choosing an assisted living facility, either for yourself or a loved one. We have developed this list  after having first hand experience with assisted living facilities that my father lived in, and after having interacted with our clients regarding these issues over many years.

  1. Is the facility well regarded in the community? Has it been recommended to you by someone who has had a loved one or friend there?
  2. Would the friends and family members of the resident be able to visit at any time, or are there restrictions in this regard?
  3. Is the facility in close proximity to the hospital and medical offices that the resident may need to visit?
  4. How were you treated by the staff and the administrator when you visited the facility? Did you feel welcome and were you comfortable with the experience?
  5. Were all of your questions answered satisfactorily when you visited the facility? Were you left in doubt or were you confused about any of their answers?
  6. Did you feel that you or your loved one would fit into the community for an extended period of time?
  7. Could you imaging yourself or your loved one living there?

* This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
10
2014
0

FIVE THINGS BABY BOOMERS AND SENIORS CAN DO TO GAIN PEACE OF MIND FOR SURVIVING THEIR RETIREMENT YEARS

Many Baby Boomers and seniors are concerned about surviving their retirement years. Many have not been able to save adequately, have suffered losses in the stock market, and do not have pension funds sufficient to meet their future needs. Most are concerned about health care issues, and how their nursing home costs would be paid for if needed. They also want to leave a legacy to their loved ones.

First: Update your estate plan to a Long Term Care Plan. Most of our clients do not have long term care insurance to pay for a stay in a nursing home. Fortunately however, California has Medi-Cal, which will pay for a stay in a nursing home provided that you qualify. You can now set up a long term care plan, as part of your estate plan, to provide for asset protection and qualification for Medi-Cal. within the state regulations. For veterans, the plan will also help for qualification for the VA Aid & Attendance Pension Benefit to help pay for in home care and assisted living facilities. Your plan will also confirm your overall desires regarding  how your assets will be spent for your care at home and otherwise.

Second: The home is often our clients’ largest asset. You can take steps now through your estate planning documents to assure that your home will pass to your loved ones as a legacy, without a Medi-Cal lien, so that the state will not be able to recoup any nursing home payments it has made for you.

Third: Change your life style just a little bit, and try to keep more of what your earn. I recommend reading The Millionaire Next Door by Thomas J. Stanley in this regard. Stanley gives examples of how changing your lifestyle somewhat, and giving up certain luxuries, will allow you to put more money into your retirement accounts on an ongoing basis. As you get older, cut back on certain expenditures, and put what you save into your retirement accounts. Go out to fancy dinners less often, put off buying a new car, and put those savings into your retirement account.

 Fourth: We still have Social Security. Some analysts say that the program can pay for benefits for the next 25 years for the general populace. There also seems to be a consensus of opinion, that any changes in the law should not affect Baby Boomers. Although you can begin taking benefits at age 62, this could be a 25% reduction of what you would receive if you waited until you are 66. If you wait until age 70, this could raise your benefit by another 8% per year, so wait longer if possible.

 Fifth: Stay physically active and you will most likely remain healthier and live longer. Try to increase the number of steps you take every day. It has been said that sitting is the new smoking. Get up and walk around for ten minutes every hour. This will also make you more productive. 

* This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Nov
04
2013
0

Peace of Mind Now For Baby Boomers and Seniors Facing Retirement

A big issue now facing Baby Boomers and seniors is, surviving in retirement. We should have our “Ducks In A Row” now regarding health and financial issues, and there are many things we can do.

 Most of our clients do not have long term care insurance to pay for a stay in a nursing home. If they do, the policy would probably not pay the full cost. Fortunately however, California has Medi-Cal, which will pay for a stay in a nursing home provided that you qualify. You can now set up a long term care plan through your elder law attorney, as part of your estate plan, to provide for asset protection and qualification for Medi-Cal. For veterans, the plan will also help for qualification for the VA Aid & Attendance Pension Benefit to help pay for in home care and assisted living facilities. Your plan will also confirm your overall desires regarding how your assets will be spent for your care at home and otherwise. If you lose capacity, your loved ones will have the authority to follow through with your plan.

 The home is often our clients’ largest asset. You can take steps now through your estate planning documents to assure that your home will pass to your loved ones as a legacy, without a Medi-Cal lien, so that the state will not be able to recoup the nursing home payments it has made for you.

 Many Baby Boomers’ do not have sufficient savings to live on through retirement. The stock market has hurt many portfolios in the past. Fortunately however, Social Security is still in existence. Some analysts say that the program can pay for benefits for the next 25 years for the general populace. There also seems to be a consensus of opinion, that any changes in the law should not affect Baby Boomers, and that the fund will be available for them. Although you can begin taking benefits at age 62, this could be a 25% reduction of what you would receive if you waited until you are 66. If you wait until age 70, this could raise your benefit by 8%, so wait longer if possible.

 For additional peace of mind, you can change your life style just a little bit, and try to keep more of what your earn. I recommend reading The Millionaire Next Door by Thomas J. Stanley in this regard. Stanley gives examples of how changing your lifestyle somewhat, and giving up certain luxuries, will allow you to put more money into your retirement accounts on an ongoing basis.

 This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

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