Mar
14
2019
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Welcome To Our Workshop

Find out what we will talk about at our next asset protection workshop regarding how to pay for our long term care and getting our ducks in a row for Medi-Cal qualificationWelcome to our estate planning and asset protection workshop

May
31
2017
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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
02
2017
0

2017 MEDI-CAL DESK REFERENCE

2017 MEDI-CAL DESK REFERENCE

Divestment Penalty Divisor $8,189.00
Individual Resource Allowance $2,000.00
Monthly Personal Needs Allowance $35.00
Community Spouse Resource
Allowance $120,900.00
Monthly Maintenance Needs
Allowance $3,023.00
Resource Allowance for a Couple
(Husband and Wife both in facility) $2,000.00/each

MICHAEL J. YOUNG, ATTORNEY AT LAW

Elder Law Planning, Estate Planning, Trusts, Probate, Real Estate,

Preservation of Assets, Long Term Care Planning

Member: National Academy of Elder Law Attorneys, Inc.

1931 San Miguel Drive, Suite 220

Walnut Creek, CA 94596

E-mail: LawYoung1@Gmail.com Phone: (925) 256-0298

www.WalnutCreekElderLaw.com Fax:     (925) 938-6727

May
04
2015
0

Medi-Cal Gifting Rules for a Single Person

Click the link below to find out about the Medi-Cal gifting rules for a single person.  Medi-Cal presently has a 30 month look-back period for gifting. The period of ineligibility starts when the gift is made. When the Deficit Reduction Act (DRA) rules are adopted in California, there will be a five year look back period with the penalty period beginning when you are in a nursing home and otherwise eligible for Medi-Cal.

CLICK HERE: Walnut Creek, CA Elder Law Attorney Michael J. Young talks about Medi-Cal gifting regulations for a single person

Your elder law attorney will help you to increase the quality of your life, and not just figure out who-gets-what after you pass away. 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 advised 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.

Apr
20
2015
0

Asset Protection, Medi-Cal and Financial Durable Powers of Attorney

Asset Protection, Medi-Cal and Financial Durable Powers of Attorney

Specialized Language is required in Financial Durable Powers of Attorney for Asset Protection and Medi-Cal planning. Most Financial Durable Powers of Attorney do not have the required language to make gifts and transfers of assets, like the home, for asset protection and Medi-Cal Planning.

Click Here Watch A Short Video On This Subject

Nov
10
2014
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Alternative Long Term Care Insurance Options for Baby Boomers

Most of our clients are Baby Boomer age and older. During the initial interview with my clients, I always ask how they plan to pay for their long term care, and whether they have long term care insurance. It seems that most people do not have long term care insurance. Many of my clients have looked into it, but have decided against it because of various reasons. Some feel that the cost is too high, or they don’t like the idea that if you don’t use it, you lose most of it. Also, some of my clients have been denied coverage because of their age, health issues, or both.

There are some interesting options that most people have never heard of, that are still available to my Baby Boomer and older clients, who are still in reasonably good health, for long term care coverage. I will share those options to you in a subsequent blog.

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.

Written by mike in: Uncategorized |
Aug
04
2014
0

One Unique Way You Can Use Your Own Funds To Help Pay For Your Long Term Care Is To Convert Your Life Insurance Policy Into a Life Care Funding Trust

As we have discussed in the past, there are 3 ways to pay for long term care. 1) You can use your own money; 2) You can use your long term care insurance if you have it; 3) You can utilize the VA Aid & Attendance program to help pay for in home care and the cost of assisted living facilities, and you can use Medi-Cal to help pay for a stay in a skilled nursing facility . 

Most of our clients are not Veterans or the surviving spouses of veterans, and cannot tap into the VA Aid & Attendance program to help pay for in home care and assisted living facilities. Others may never need to go into a nursing home and  utilize Medi-Cal. In addition, as it turns out, most of our clients do not have long term care insurance, and they find long term care insurance to be either impossible or too cost prohibitive to obtain. 

Government benefits are available, but may become more difficult to obtain in the future. California will soon adopt the Deficit Reduction Act, which will make Medi-Cal eligibility more difficult. Medi-Cal can pay for your stay in a skilled nursing facility. VA will probably institute a look-back penalty period for gifting, and make that benefit more difficult to obtain.

Also, many Assisted Living Facilities now offer several  levels of care including independent living, custodial care and care in memory wings. If you could utilize your own funds for the cost of the assisted living facility, you would probably like to stay there for as long as possible.

One way you can use you our own funds to pay for your long term care, is to possibly convert your life insurance policy into a Life Care Funding Trust. Some of our clients have asked whether they should let their life insurance premiums lapse, as part of budgeting for the cost of their long term care. Premiums on life insurance policies have typically been made for many years, and it would be a shame to let the policy lapse without a benefit to you.  

 We can explore whether your life insurance policy has a value that can be converted to a long term care benefit. As part of the process, we will present a copy of the policy to the Life Care Funding Company along with a simple application which includes some medical information about you. The Life Care Funding company underwriters will determine whether they will make a cash offer to you for the purchase of the policy, and for how much. If they make such an offer and you accept it, the cash is then placed into a Life Care Funding Trust for your benefit, and payments are made to your care provider on a monthly basis. You will then stop making premium payments, and you will benefit from the policy. Please let us know if you would like us to help you explore this possibility.

In the future, we will be discussing other unique ways we can utilize our own funds to help pay for our long term care.

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.

Sep
30
2013
0

I Thought My Revocable Living Trust Protected My Assets from Medi-Cal

Many people who call our office are under the belief that because they have a revocable living trust, that their assets are exempt from Medi-Cal qualification. They also believe that their revocable living trust protects their assets from a Medi-Cal lien from recovery to the State after they die. Both notions are incorrect.

When qualifying for Medi-Cal, all assets in the name of the applicant, including those in the applicant’s revocable living trust, are counted. If assets are held in a revocable living trust created by a husband and a wife, all of the assets in the trust are counted towards qualification, whether the applicant is the husband or the wife. If you pass away after having been on Medi-Cal, all assets in your revocable living trust are subject to recovery. If there are no assets in your revocable living trust when you die, there can be no recovery against the trust.

In order to gets your “Ducks In a Row” for possible Medi-Cal qualification and protections of assets, your revocable living trust should be updated so that it contains the requisite asset protection and government benefits planning language. In the event of your incapacity, this language will allow your fiduciary, usually your spouse or another loved one, to gift assets or transmute (transfer) assets, pursuant to the Medi-Cal regulations and California law, in order to qualify for Medi-Cal. The majority of revocable living trusts do not contain this language.

If you have an irrevocable trust, the assets in that trust may or may not be counted toward Medi-Cal qualification. And, the assets in the irrevocable trust may or may not be protected from a Medi-Cal lien after you die. The irrevocable trust should be examined by a qualified elder law attorney in order to make that determination.

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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