Jun
01
2017
0

Medi-Cal Qualification and Joint Accounts

If you are applying for Medi-Cal, you will be required to disclose all of your assets in your application package. Medi-Cal wants to see evidence of all of your accounts, even joint accounts that you may have with someone else. Joint accounts will be considered by Medi-Cal, at least initially, to belong to you alone. So for instance, if you have a joint savings account with your daughter, Medi-Cal will view that account as belonging to you alone. As a result, the value of the account may disqualify you for Medi-Cal.

You may be able to remedy the situation if you can prove to Medi-Cal that all or a portion of the fund does not belong to you. You can also spend the money in the account on yourself, make repairs to your home, pay down your mortgage, etc. You may also be able to gift the money, or a portion of it from the account. As we have explained in previous blogs however, gifting can create periods of ineligibility for Medi-Cal if it is not done correctly.

Planning for asset protection and Medi-Cal with your estate planning and asset protection attorney at an early stage, can be very beneficial. Your revocable living trust and financial durable powers of attorney can also be amended to have the required gifting and asset protection provisions for Medi-Cal qualification, should you become incapable at some point of handling these matters on your own.

Please feel free to contact our office should you need help with estate planning, applying for Medi-Cal and asset protection. 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 the older client and their families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

May
31
2017
0

California Still Has A 30 Month Look Back for Gifting

California still has the 30 Month Look Back Penalty Period for Gifting. There is a federal law known as the Deficit Reduction Act (DRA), which has a 60 month look back penalty period. However, California has not to date implemented that law. Medi-Cal eligibility workers are required to use the 30 month look back period.

When you apply for Medi-Cal, the application asks whether you have given away any countable, or non-exempt assets within the last 30 months. If you have made such a gift without consideration, or for less than fair market value within the 30 months prior to making the application, a penalty period of ineligibility may be imposed. Transfers of any kind between spouses are exempt and do not create any periods of ineligibility.

The penalty transfer amount, which is also known as the monthly average nursing home private pay rate, is presently $8,515. The penalty period starts when the transfer is made, as opposed to when you make the Medi-Cal application. To calculate the penalty period, first check to see if it was made more than 30 months prior to making the Medi-Cal application. If more than 30 months have passed, there is no penalty.

Lets assume however that you have gifted $50,000 to your grandchild on October 1, 2016, and that you are applying for Medi-Cal on January 1, 2017. The gift was made 3 months prior to the application, so the 30 month look back penalty rule applies. You then divide $50,000 by $8,515, which reflects 5.87, which is rounded down to 5 months of ineligibility, starting from the date of the transfer. As a result, you would be ineligible for Medi-Cal during the months of October, when the gift was made, November, December, January and February, but you would be eligible March 1, 2017. There are of course other rules to consider, which may be to your benefit, which your elder law attorney can help you with.

Please feel free to contact our office should you need help with applying for Medi-Cal, and asset protection. 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 the older client and their families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Feb
17
2015
0

Estate Plans For The Older Client Are Different

The plain vanilla estate plan, which most people have, is designed for the younger client. The main purposes of this estate plan are to avoid probate court and to provide for the distribution of assets to heirs upon death. It will also minimize estate taxes.

Estate plans for the older client include all of the death planning as stated above. But they also include long term care and disability planning, and are designed for asset protection.  Your elder law attorney will help you plan ahead in the event you or your spouse face long term care needs during your lives. We have seen some families spend hundreds of thousands of dollars for their care. Skilled nursing care can be as much as $10K or $15K per month. These issues must be addressed.

The elder law attorney helps clients and their families plan for and qualify for Medi-Cal. This state program helps pay for a stay in a skilled nursing facility in the event you use all of your Medicare days.  Through proper Medi-Cal planning, it is possible to qualify for Medi-Cal and transfer your home to your loved ones without a state lien, and without a step-up in basis. You can also plan to preserve your monetary assets under the Medi-Cal regulations. Your elder law attorney can also help you plan for and qualify for the VA Aid & Attendance Benefit, which can help pay for your in home care and assisted living facility costs.

In addition, for the older client, you can review how you may be able to make a tax advantaged transfer of a portion of your savings or other assets into a financial instrument that has a long term care benefit rider. Unlike traditional long term care insurance, if you don’t use this long term care benefit rider, you still have a financial benefit to transfer to your loved ones upon death.

If you have an estate plan that is created for the younger client, please feel free to contact Elder Law Attorney Michael J. Young for further discussion.

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.

Sep
29
2014
0

An Interesting Insurance Based Strategy To Help Private Pay For Long Term Care

Our clients are concerned about how they will private pay for their long term care. Most long term care takes place first in our homes and then in assisted living facilities. We have Medi-Cal in California, but it only pays for a stay in a skilled nursing facility, if we qualify. As a result, our clients are always asking, “How can we private pay for our long term are if we do not go into a nursing home?”

This strategy may be appropriate for individuals who do not want to pay premiums to purchase long term care insurance policies. People have become reluctant to purchase long term care insurance because of the cost, and because of the fact that if you do not use it, your investment by way of premiums paid is lost. In addition, long term care insurance companies have been known to raise the premiums of its insureds over time.

Many of our clients take the position that they will “self-insure”, using their savings for their care. For these individuals, one effective planning approach may be to leverage some of their savings that they would use for their care in the future to provide a larger pool of money. This money can be utilized to pay for care in the home, assisted living facility or nursing home. If the money is not needed, it would then pass to their children or heirs.

To employ this strategy, money is transferred from its current location (bank account, older fixed annuity past the penalty period, etc.) into a specially designed life insurance policy with riders that allow accelerated payment of a large portion of the death benefit to the policy owner upon a qualified health event, to help pay for the costs of long term care.

Depending on the age and health status, the lump sum premium paid into this type of life insurance policy may provide a death benefit of double or more that amount. However, if the insured qualifies to begin using the long term care benefits, the insured may receive as much as five times the amount of the original premium. Any monies not used for convalescent care would still pass to the heirs upon the death of the insured.

When your elder law attorney prepares your long term care estate plan, ask him to explore this possibility with you.

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 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.

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.

Mar
11
2014
0

No Look Back Period for VA Aid & Attendance

There will NOT be a look-back gifting penalty period for the VA Aid & Attendance Pension Benefit. On February 27, 2014, Senate Bill 1982, known as The Veterans Pension Protection Act, did not get the required votes to pass. One of the purposes of this bill, which also contained other provisions, was to help curtail some of the backlog at the VA for processing this benefit.

 Unlike Medi-Cal, VA does not have a look-back gifting penalty period for qualification for the Aid & Attendance Pension Benefit. As a result, you can theoretically gift all of your assets away today, and be eligible for this VA benefit tomorrow with no gifting penalty. California however has a 30 month look back penalty period for gifting for eligibility for Medi-Cal. Medi-Cal pays for nursing home costs, minus a share of cost contribution by the recipient.

 A problem has been that the 30 month look back penalty rules for Medi-Cal have often been ignored when large gifts have been made for qualification for Aid & Attendance. The result has been that if you make a big gift today in order to receive this VA benefit, you may have created a long period of ineligibility for Medi-Cal, by not following the Medi-Cal gifting regulations. Your elder law attorney will advise that any gifting made for qualification for the VA Aid & Attendance Pension benefit should coincide with the Medi-Cal gifting rules.

 If Senate Bill 1982 had passed, any gifts made within the last three years would be reported, and a penalty for eligibility would attach.

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.

Oct
08
2013
0

IRAs and Medi-Cal Qualification

The Medi-Cal applicant can have any amount of IRAs that are in his name, and still qualify for Medi-Cal. For instance, the applicant could have $200,000 or more in his name in IRAs, and still be eligible for Medi-Cal. IRAs and work related pension funds are also exempt from Medi-Cal qualification. The only requirement is that the Medi-Cal applicant must be receiving periodic payments of interest and principal from the IRA. If you are receiving minimum required distributions (RMDs) under the IRS rules from your IRAs, then you have probably satisfied this requirement.

In addition, the IRAs owned by the well spouse of a Medi-Cal applicant are also exempt for Medi-Cal qualification. The IRAs owned by the well spouse are also not included as part of the community spouse resource allowance (CSRA). The CSRA, or the amount the well spouse can retain is $115,920.

After the Medi-Cal applicant dies, the State cannot recover from his IRAs or from his work-related pension funds, provided that a pay on death beneficiary is named. If the beneficiary of the IRA is the estate of the applicant, the State may be able to recover against the fund. Beneficiary designations on IRAs and other assets should be reviewed as part of the long term care planning process with your elder law attorney.

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.

Jul
30
2013
0

Alzheimer’s Is A Family Illness!

Our office represents many families who have a loved one who has been diagnosed with Alzheimer’s disease or another form of dementia. We typically will receive a call from the spouse or child of the person suffering from dementia. The person calling may tell us that their spouse or parent has become forgetful, is not paying the bills or that he is very depressed. On other occasions, we are told that their loved one is “acting out” and is doing unusual things, such as putting their socks on their hands instead of their feet, or are wandering off and getting lost.

Alzheimer’s disease and dementia definitely creates an extremely stressful time for the entire family. The fortunate victims of this disease have spouses and family members who can help them through their ordeal. Keep in mind also, that you do not have to handle this alone, and that help is available to you. The first thing that should be done is to have a physician give your loved one a complete physical examination. The examination should include neurological testing, medical history, lab tests, function tests and brain imaging. The examination results can determine whether the symptoms are temporary, and could show that the behavior of your loved one is caused by depression, poor nutrition, drug interaction or alcohol abuse. If the symptoms are permanent, they could be caused by dementia or Alzheimer’s disease. If the diagnosis is Alzheimer’s disease, you can also consult with a geriatric psychiatrist who can help with behavioral issues. If you need help finding a doctor, you can check with a physician’s referral service. Also, if you participate in caregiver support meetings, you can ask the other participants at the meetings.

Your elder law attorney can also be helpful to you to plan the elder care journey for the loved one who is suffering from dementia and their family. We meet with families, and help get the family’s “ducks in a row” from a legal and estate planning perspective. We can give advice on asset protection and qualification for Medi-Cal and the VA Aid & Attendance Pension Benefit. The families we meet with derive a great deal of peace of mind from these meetings.

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 older clients 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, older clients 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.

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Jul
19
2013
0

Baby Boomers Predict The Future!

Baby Boomers Predict The Future!

Wouldn’t it be nice to be able to predict the future for us Baby Boomers, and start planning for it! But we do know certain things about our future …

  •  On average, 10,000 people are turning age 65 every day.
  • It is predicted that at least 70% of people over age 65 will need long-term care services.
  • Currently, the median cost of long-term care for one year in the United States is $83,950.00.
  • In 30 years, when the last of the Boomers reach age 65, the price of long-term care is expected to be at an all time high of $190,000 per year.
  • Currently, the average amount of time a person needs long term care is 2.7 years.

 As my grandson would say, “OMG!”

As a senior estate planning attorney, and a Baby Boomer, we need to ask ourselves what we can do to plan for our long term care. GE Long Term Care Insurance conducted a study and found that nursing home costs are rising at a rate of 5% every year, outpacing inflation. With the rapidly growing elderly population this is the simple law of supply and demand.

 So, what can we do to prepare for the second half of life? If you or your spouse are age 65 and one of you goes into a nursing home, do you have a spare $513,000 lying around to pay for your or your spouse’s care.

 We still have Medi-Cal in California, which pays for the cost of a skilled nursing facility. The VA Aid & Attendance Pension benefit is still available to help pay for in home care and assisted living facility costs.

But you need to “get your ducks in a row” ahead of time to plan for qualification for these benefits. For starters, Baby Boomers are now taking advantage of modern asset protection and government benefits planning qualification techniques, which are incorporated into their estate planning documents. Also, one of our main goals is to preserve our homes for our children, without a lien for payback to Medi-Cal. With the modern language in your estate planning documents, if you become incapacitated, your spouse or loved one can follow through with qualification and asset protection techniques under the Medi-Cal and VA regulations.  

This information is not to be taken as legal advice, and you are encouraged to see your senior estate planning attorney before attempting any of these techniques. 

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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