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.


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.

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.

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.

Oct
08
2013
0

What Can The State Recover After I Die?

If you die after having been on Medi-Cal, the State will try to recover from your estate what they have paid out for your benefit. If there is nothing left in your estate, there is nothing for the State to take. If your home is still in your estate when you die, it could be subject to State revocery. Your revocable living trust does not protect your home from State recovery.  If you transferred your home prior to your death, following the Medi-Cal regulations, it would not be subject to recovery by the State upon your death.  If you transferred your home and reserved an irrevocable life estate, the home would not be in your estate when you die, and not subject to recovery. The life estate would disappear upon your death, and the State does not pursue recovery against reserved irrevocable life estates.

The State will not pursue recovery against the surviving spouse of a deceased Medi-Cal beneficiary. After the surviving spouse dies however, the State can pursue recovery against any property received by the surviving spouse through distribution or survival from the Medi-Cal beneficiary spouse.

If the Medi-Cal recipient is survived by a minor child under the age of 21, or if there is a blind or disabled child of any age who survives the Medi-Cal beneficiary, there can be no claim for recoupment by the State.

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
07
2013
0

Medi-Cal and Life Insurance

An individual can have any amount of Term Life Insurance, and still qualify for Medi-Cal. Term life insurance has been defined as life insurance that pays a benefit in the event of the death of the insured. So if you have a life insurance policy that pays $10,000 upon your death to your son for instance, that policy is exempt for qualification from Medi-Cal. Also, after the Medi-Cal applicant passes away, the $10,000 is paid to the beneficiary son, and there is no recovery by Medi-Cal. Problems can arise however, if the Medi-Cal recipeint receives a benefit from a life insurance policy, upon the death of his spouse for instance. This event could create immediate disqualification for the Medi-Cal recipient. As a result, when we do long term care planning, we take this possibility into account.

Whole life insurance policies are treated differently for Medi-Cal qualification. Whole life polices cannot  have a total face value, or cash value, that exceeds $1500. The cash value of the policy that exceeds $1500 is counted as an asset toward Medi-Cal qualification. An individual can not have more than $2,000 in non-qualified funds in order to qualify for Medi-Cal. As a result, the cash value of the Medi-Cal applicant’s whole life policy in excess of $1500 will have to be reduced and then transferred in order to create qualification. If the applicant has lost mental capacity, the financial durable power of attorney, provided it has the appropriate language, would be relied upon to liquidate the policy and then to possibly gift the excess amounts, in order to create Medi-Cal qualification. All of these issues should be taken into account as part of long term care planning.   

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.

die after having been on Medi-Cal, and your term life insurance policy pays a benefit in the amount of $10,000 to your son, for instance .

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.

Aug
19
2013
0

Finding Support For Alzheimer’s Patients:

If you are taking care of a loved one who has been diagnosed with Alzheimer’s disease, you are probably overwhelmed. You of course will need help. At the Law Offices of Michael J. Young in Walnut Creek, CA, www.WalnutCreekelderLaw.com, we suggest that our families begin by taking small steps.

One of the first steps I would take is to start to become educated about the disease by checking out the Alzheimer’s Association website www.alz.org.  By reading the material on this website, you will become informed about what Alzheimer’s is, how the brain works, and what to expect regarding symptoms and preferred treatments.

The site will also show you where the local Alzheimer’s Association offices are. Through these offices, you can sign up for support groups and learning centers. One thing that you will become aware of is that you are not alone! Through the Alzheimer’s Association website, you can check out early-stage support groups, and become involved in them. You will gain peace of mind through this wonderful organization.

You of course can also obtain individual support through the clergy, home health agencies and private counseling.

The next step you should take is to make sure you have your “Ducks in a Row” from a legal perspective. Did you know that you can incorporate asset protection and government benefits planning into your estate planning documents, that will be effective even if there is a diagnosis of dementia? Your loved one may have to go to a nursing home at some point, which is extremely expensive if you have used up your Medicare days and have to pay privately. Fortunately, California still has the Medi-Cal system to pay for nursing home costs. However, the program is asset and income based, and you will need to get your ducks in a row ahead of time for qualification to obtain this benefit. Couples and individuals are many times surprised to learn that their loved one can qualify for this wonderful benefit, even though they would appear to have too much in the way of assets. If your loved one has lost mental capacity at the time we start to work on qualification for Medi-Cal, the qualification process can become more difficult.  

You can also arrange a time for a free 15 minute telephone consultation to discuss these issues with elder law attorney, Michael J. Young, by going to https://www.timetrade.com/book/PTXVP

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
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.

Jul
01
2013
0

VA Aid & Attendance 2013 Pension Benefit Amounts

The 2013 Maximum Aid & Attendance Pension Benefit Rates are set forth below. This is a wonderful benefit for older wartime veterans, which can help pay for the cost of in-home care, assisted living facilities and board and care. The benefit is “non service connected”, which means that qualification is not dependent upon a wartime injury.

The veteran must typically have served ninety days of active duty, one day of which was during an offical wartime period. The veteran cannot have had a dishonorable discharge. The veteran’s physician must declare the veteran as in need of assistance from another individual and in need of a “Protective Environment”, which may include services offered by a care facility or company.

You should discuss with your elder law attorney how to make the A&A Pension Benefit part of your long term care planning.

BENEFIT AMOUNTS:

Single Veteran         $1,732.00 Per Month or $20,795.00 Per Year

Married Veteran      $2,054.00 Per Month of $24,652.00 Per Year

Surviving Spouse $1,113.00 Per Month or $32,114.00 Per Year

Veteran Married to Veteran (Both A & A) $2,676.00 Per Month or $32,114.00 Per Year.

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 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 families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney regarding any planning.

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