Massachusetts Estate Planning & Asset Protection Blog

Why Your Children and Grandchildren Should Have Healthcare Documents in Place

Posted by Dennis Sullivan & Associates on Fri, Aug 17, 2018

 

family

First, you may ask, what are the Healthcare Documents that you recommend?

At Dennis Sullivan & Associates we recommend to everyone over the age of 18 (clients, friends, and family members) have appointed people to make health care decisions, and to receive health care information.

This is especially crucial for those who have college students and young adults in their lives. Young adult children and grandchildren, often times headed away to college, need health care decision making documents in place. These documents include an Authorization for Release of Protected Health Information forms in place (HIPAA), and Living Will and Health Care Proxy.

An 18 Year Old Is An Adult!

Once you turn 18, you are legally an adult, and no one has any automatic right to any medical information. Medical professionals are obliged to withhold any and all medical information of yours from anyone who may be requesting information, unless you specifically grant them authority to release the information. Sometimes, young adults will let the doctor know that it is okay to share information with their parents or close relatives, but it may not come up when the young adult sees the doctor. If an 18 year old forgets or is unable to give their consent, medical professionals, by law, are required to withhold the information.

HIPAA

In the unfortunate event where a young adult is unable to give consent due to being unconscious or in a coma the only way for parents to gain this information is if their child has signed off on the Authorization for Release of Protected Health Information form (HIPAA). This allows a parent to get information from a college health center, and speak with the care team.

Health Care Proxy and Living Will

Terry Schiavo is the reason why the importance of a Living Will and Health Care Proxy gained national attention. A Living Will addresses end of life decisions including the permission/request to discontinue life support after an extended period if a person is in a persistent vegetative state. Terry Schiavo did not have a Living Will in place, and thus a decade long legal battle ensued between her husband and parents.

 

A Health Care Proxy designates an Agent that can make Health Care decisions on your behalf if you are unable to make the decisions for yourself. Examples of this could include being unconscious, lacking capacity, or being placed in a medically induced coma. A Health Care Proxy/Living Will and is essential because it names agents to make health care decisions if you’re unable to make decisions on your own.

The Health Care Proxy and Living Will give authority to a person (or persons) of your choice to make decisions if you are unable to.

In short, a HIPAA document will allow for those of your choice to be privy to medical records and a Living Will and Health Care Proxy will appoint an agent to be your medical decision maker in the event that you are unable to do so.

If you would like to implement these essential documents, call our office to schedule a consultation. Many of the estate plans we review are death plans. They are designed to solve situations that occur at death, avoiding probate and distributing the estate. While all these objectives are important, there is much more that is needed. One of the most important parts of planning focuses on how documents work while you and your family are living. To learn more about necessary elements of an estate plan, attend a complimentary workshop.

Tags: children, health, Health Care, HIPAA, health care proxy, grandchildren, power of attorney, Skilled Care

Is your Planning Stuck in Limbo? (part 2)

Posted by Dennis Sullivan & Associates on Tue, Aug 01, 2017

How does the debate over health care reform affect you and your estate plan?

35274856603_c2af85ca10_b.jpg In our last post we discussed the importance of keeping up with the constant changes happening in health care reform. We will continue to examine how the on-going deliberations in Washington may affect you, your future health care and your estate.  We at Dennis Sullivan & Associates are keeping up to date on all the changes, and making sure you stay informed on all the important details.  For more information on the current law of the land, you can download our Report: Senior & Boomers Guide to Health Care Reform.   

The Senate has dealt a devastating setback to Republican efforts to repeal and replace Obamacare, defeating a GOP "skinny repeal" bill early Friday morning. With the "skinny repeal" bill off the table, lawmakers are unsure of where the health care debate is headed. 

Senate Majority Leader McConnell and his staff are trying to find a balance between conservative Republicans, who want a full repeal of ObamaCare and a replacement that has lower health care costs, and more moderate Republicans who want to preserve its more popular benefits.

The deal-making process is in full swing, with the additions of opioid funding and allowing health savings accounts to be used to pay for insurance premiums. Some Senators are for potentially leaving in some taxes to pay for more generous benefits, after weeks of being criticized by Democrats for offering “tax cuts for the rich and Medicaid cuts for the poor.” Conservatives want to cut more from the regulations and many from Medicaid expansion states are uneasy about future cuts to Medicaid.

Senator Ted Cruz of Texas has offered an amendment called the “Consumer Freedom Option” that would allow insurance companies to sell any health coverage plan they wish as long as they provide one plan that satisfies the “essential benefits” mandates of Obamacare. While the Cruz amendment appeals to conservatives who want to provide consumers with lower cost options, moderates are concerned it could negatively impact those with pre-existing conditions. Supporters have suggested that federal subsidies could help ensure that premiums don’t increase for those who are seriously ill. The CBO is currently scoring this amendment.  

President Trump, along with Senator Rand Paul of Kentucky and Senator Ben Sasse of Nebraska, has even offered to repeal ObamaCare for now and replace it later.

Of course, no one is going to get everything they want so there must be compromises. Majority Leader McConnell has said that if the Senate is not able to pass a bill soon, Congress will have to pass a bipartisan measure to shore up the imploding health insurance markets.

And so, the Civics lesson continues. The process is at work.  As we see here the process can be long, unstable and worrisome.  Luckily for you your estate planning doesn’t have be. We at Dennis Sullivan and Associates make your estate planning and asset protection worry and stress free.  Once you have a plan in place you will feel confident knowing it will protect you, your family and your life savings.  You can enjoy life to the fullest knowing you and your family are protected no matter what unknowns lay ahead. 

 

At the Estate Planning & Asset Protection Law Center, we help people and their families protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: Affordable Health Care, Affordable Health Care Act, Announcements, Elder Law, Estate Planning, Financial Planning, Health Care, Health Care Ruling, Medicaid, Medicare, Obamacare, Retirement, applying for medicare, Medicaid penalties, care costs, care, coverage, coverages, disenrollment, elder care, enrollment, elder care journey, federal, health, health Care act, life-care plan, long term care, medicaid qualification, medical expenses, proposed changes, senior, unreimbured medical expenses, seniors

Is your Planning Stuck in Limbo?

Posted by Dennis Sullivan & Associates on Thu, Jul 27, 2017

How does the debate over Health Care Reform affect you and your estate plan?

Everyone is talking about health care reform: whether it’s the House bill, Repeal & Replace, Skinny Repeal, it can make your head spin.  One question on everyone’s mind is how changes to health care will affect them.  We at Dennis Sullivan & Associates are keeping up to date on all the changes, and will cover the process through a series of blogs to explain where health care reform is now, how it affects you and what the future may hold.  For more information on the current law of the land, you can download our Report: Senior & Boomers Guide to Health Care Reform

 


Senate pic-1.jpg

Eventually, both the House and Senate must vote on the same bill.

The battle continues in Washington over the repeal or replacement of the Affordable Care Act (ObamaCare) and as we are witnessing; this can be a messy process. 

Why Republicans are trying so hard to repeal and replace ObamaCare and how they are going about it:

ObamaCare, you may remember, was passed by the Democrats in 2010 with no Republican support. Ever since, Republicans have campaigned on repealing the program, which was unpopular with many Americans. “Repeal and Replace” was their rallying cry to voters to help them win back control of the House in 2012, then the Senate in 2014, and finally the Presidency in 2016. If the Republicans are not able to fulfill this major promise, some may be in danger of losing their seats in the next election, as they would likely be blamed for the problems with ObamaCare if they don’t fix them. These are the political reasons.

Democrats admit that ObamaCare has problems and needs a major fix to survive. But they are not on board with repeal and replace of such a signature piece of legislation, while Republicans try to find a way to pass new legislation.

The Legislative process:

The normal legislative process is that a bill begins in the House, where it is written, discussed and approved by a committee before the House votes on it. If it passes the House, it is then sent to the Senate. The Senate can vote on the same bill, make amendments to the House bill, or create its own bill. Eventually, both the House and Senate must vote on the same bill, so if there are differences, members of both the House and Senate meet in committee to resolve them. Once a bill passes both the House and Senate, it is then sent to the President who can sign it into law or veto it.

Right now, there is a House bill on health care that has passed the House, and a Senate bill that has not passed the Senate. Discussions and amendments are still occurring with the Senate bill in hopes it will pass soon. The public posture is that this messy legislative process is making the bill better.

Further complicating this process is that while the Republicans have a majority in both the House and the Senate, they only have 52 Republican Senators. 60 votes are required to overcome the filibusters and pass new legislation, so they are attempting to pass health care legislation through the Budget Reconciliation process. It only requires 51 votes, but it limits the legislation to budget-related items only. They would not be able to include provisions some Republicans want in a full repeal and replace bill—for example, letting insurance companies sell across state lines to increase competition, lower prices and create better plans; and allowing the government to negotiate lower drug prices. Issues like these would have to be voted on later.

For the Senate bill to pass in Reconciliation, 50 Republicans must vote for the bill, since no Democrat or Independent is expected to vote for the bill. Vice-President Pence would break the tie if needed.

So far:

The Senate rejected a proposal from Republican lawmakers to repeal Obamacare on Wednesday July 26, 2017, marking a significant milestone in the Republican Party's years-long political crusade to gut former President Barack Obama's legacy health care law.

 

What does the future hold?

We aren’t sure what the future American Health Care Act is going to look like, not sure anyone does, but luckily protecting yourself and your loved ones from expensive long term care doesn’t have to be so uncertain.  With asset based long term care products, there are ways to insure your control over your future long term care and insure you have something left over for your spouse, children and loved ones. Don’t let your long term care plan sit in limbo. Stay tuned we will discuss more about what the future looks like in our next blog post.

 Click here for more information on  Estate Planning and Asset Protection

At the Estate Planning & Asset Protection Law Center, we help people and their families protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

If you would like more information on Medicaid, the Affordable Care, or the impact of new health care laws on your planning, request your free preview of our guide, the Senior & Boomers’ Guide to Health Care Reform & Avoiding Nursing Home Poverty. 

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: Affordable Health Care Act, Announcements, Dennis Sullivan, Elder Law, Estate Planning, Estate Planning Recommendations, Estate Planning Tip, Financial Planning, Health Care, Health Care Ruling, Medicaid, Medicaid penalties, Medicare, Obama, Obamacare, Retirement, care costs, coverage, unreimbured medical expenses, surviving spouse, senior, coverages, applying for medicare, elder care

What to Know Before You Enroll in Medicare

Posted by Dennis Sullivan & Associates on Fri, Feb 10, 2017

WHAT TO KNOW BEFORE YOU ENROLL IN MEDICARE

 Three critical things to know to keep your healthcare costs in check and make smart decisions.

Vaccination.jpg

  1. The importance of enrolling in Medicare on time

It sounds like a no-brainer, but most people don’t realize that the effects of procrastination in their enrollment can cost them a rise in their part B premiums (these are the premiums that cover medical services) by 10% for each year they were eligible for Medicare but didn’t enroll. The “Initial Enrollment Period” is 7 months long, beginning three months before your 65th birthday and ending three months after. You may still enroll during the “General Enrollment Period” (from January 1 – March 31 of each year), however coverage won’t begin until July and be advised that you may have a late penalty. 

Another item to note: if you’re already receiving Social Security benefits before your 65th birthday, you may be automatically enrolled in Medicare (you’ll receive notification in the mail via a Medicare card in the 3 months before your 65th birthday if you are automatically enrolled) Special enrollment periods are available for  people who are either working as a volunteer abroad or still working at age 65 with employer-provided healthcare coverage.

  1. Which plan is right for you?

There are two main plan choices for a Medicare enrollee – the “original” Medicare plan or a Medicare Advantage Plan. Read on to discover the basic components of each plan and which is best for your needs.

 The “Original” Medicare Plan includes:

  • Part A: hospital coverage
  • Part B: physician/medical insurance
  • Part D: optional, provides prescription drug coverage
  • Enrollees can also opt to add on a private ‘Medigap’ plan which will pay for more of what Medicare doesn’t cover

 Medicare Advantage Plan, sometimes a better option than the Original Medicare Plan, are regulated by the US government although they are offered by private insurers. These plans are required to offer at least as much coverage as the original Medicare Plan and many often include prescription drug coverage as well as vision, dental or hearing coverage.

The Medicare website offers a helpful tool – the Medicare Plan Finder to help you compare your plan options. Whichever plan you choose, be aware that you may choose a different plan the following year.

  1. Take Advantage of the Available Services

Screenings and preventative care may sometimes be available at no extra cost, in addition to the wellness benefits included in your coverage. One annual wellness visit to your primary care doctor is included at no extra charge in your membership. You may also be eligible to other perks such as discounts on gym membership.

 In conclusion, following the tips above to make the most of your Medicare enrollment can enable seniors to live a longer and healthier life.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

If you would like more information on Medicare, the Affordable Care, or the impact of new health care laws on your health care coverage, request your free preview of our guide, the Senior & Boomers’ Guide to Health Care Reform & Avoiding Nursing Home Poverty.  

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

Sources: Fox BusinessNews

Tags: Medicare, seniors, elder care, Elder Law, Health Care, applying for medicare, health, care costs, medical expenses

Can Your Will Protect You When You Don't Die?

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Thu, Aug 07, 2014

 

What Happens When You Don’t Die?

medicare, medicaid, wills, spouse

 

Is your “I love you” will capable of protecting you or your spouse from long-term care costs?

You know the kinds of wills we’re talking about: The husband leaves everything to the wife, the wife leaves everything to the husband and after they both die, everything goes to the kids. This works well in situations where the spouses are healthy one day and are deceased the next. 

However, as most of us know, life usually doesn’t work that way very often. Research indicates that nearly 70% of individuals over 65 will require some kind of long-term care in their lifetimes.

Thus, many spouses worry that if they predecease an ill spouse who is currently in a nursing home or will require long-term care at some point in the near future, there will be insufficient funds available to provide for their institutionalized spouses’ needs. This is an especially relevant concern for expenses that are not covered under Medicaid such as: care managers, private nurses, single rooms, as well as certain therapies and drugs.

Another concern is that the availability of funds from “I love you” wills and trusts will disqualify the surviving ill spouse from eligibility for Medicare benefits. As you know from prior articles, Medicare (MassHealth in Massachusetts) is the only long-term-care governmental program in the United States and does not cover long-term custodial care.

To solve this problem many of our clients rely on a “testamentary trust”. This is a trust built into the will of each spouse. For many estate planners, this is counterintuitive because much of the estate planning occurs within the context of a revocable living trust. In order to preserve access to Medicaid eligibility without requiring that the surviving spouse spend down the assets and lose the chance to maintain a “rainy day fund”, creating a testamentary trust in the will of the pre-deceasing spouse is essential.

What this means is that around age 55, you have to completely revise your wills and trusts to accommodate a different paradigm of thought. The thinking process is no longer “What happens when I die?” Now the question becomes “What happens if I don’t die and live a long time with expensive long-term care?”

The new paradigm requires a new estate plan. If you consider yourself middle-class (meaning that your net worth will be significantly impacted by the cost of long-term care for you and/or your spouse) and are over age 55, we suggest that you revise and update your estate plan to reflect your current and future needs as soon as possible.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

 Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: will, living will, Estate Planning, Estate Planning, Alzheimer's Disease, Elder Law, asset protection, long term care, Medicaid, in-home care, Health Care, estate reduction, estate, elder care journey, hospice, Alzheimers Disease, medicaid qualification, Wills, assets, Medicaid penalties, alzheimer's activities, in home, incapacity, Elder Law, Attorney, myths, Alzheimer's, alzheimers, financial, Attorney, income, Alzheimer's, federal, health, surviving spouse, in-home care, long term care insurance

Hiring a Health Care Aide - Independent Contractor or Employee?

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Tue, May 13, 2014

 

MassHealth, In Home Care, Massachusetts

It’s a conversation we have with most of our clients at some point when guiding them through what we call the elder care journey.  Dad wants to stay at home but needs assistance with some of what are known as the activities of daily living – eating, bathing, dressing, walking and toileting.

We recommend to our clients that they hire a home health agency for a variety of reasons which I have written about in previous blog posts.  That aide is going to be coming into Dad’s home.  The agency does background checks before hiring.  Proof of spend down for Medicaid isn’t an issue when hiring an agency.  The contract and payment to the agency is all that needs to be shown, unlike the cash payments that families often make when hiring an undocumented aide.

There is another concern we discuss with clients and their families, but which they then generally push aside, and that is the question whether the aide they hire is an employee or an independent contractor.

In many cases the line between the two is easy to draw.  For example, the contractor you hire to do work on your home is not your employee.  He is hired to do a specific job, controls the manner in which he does it and upon completion he is paid.  Similarly, most professionals such as doctors, lawyers and architects are paid the same way.

The question is more difficult to answer, however, when we consider someone who comes into your home regularly to perform a service.  For example, a landscaper who cuts your lawn or the person that comes to clean your home every week will generally be treated as an independent contractor.

What are the commonalities to an independent contractor?  If only the worker can control how the work is done, the worker provides his or her own tools and offers his or her services to the general public as an independent business, then it is clear that he is treated as an independent contractor.

The line becomes more blurred, however, when we consider the aide hired to provide care for Dad.  Does the aide work for more than one person at time?  Is the aide a live in?  Who controls the manner in which the work is performed?  And what laws might a family be concerned with if the aide is considered an employee?  We’ll discuss all that next time.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: MassHealth, Health Care, 2014, in-home care

Healthy Eating Impacts Lifestyle|Massachusetts Elder Law Attorney

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Mon, Mar 31, 2014

Lifestyle, Healthy Eating

 

I tell my clients that, as you age, your food choices become more important, because they can keep you younger – and healthier – longer.

Eating a well-planned, balanced diet may reduce the risk of heart disease, stroke, Type 2 diabetes, bone loss, cancer, and anemia. If you already have one of these diseases, eating well may help you better manage it. And it can also help reduce high blood pressure and cholesterol.

 

 

The foods you put into your mouth are the fuel that powers not only your body, but also your brain health. And they help you control – or lose control of – your weight. Extra weight, of course, increases your risk for diseases such as Type 2 diabetes and heart disease, as well as joint problems.

 

 

 

Choosing mostly nutrient-dense foods that are light in calories will give you the energy you need, while enhancing your digestion, too.

We all have friends that have started “diets” and not stuck to them. Eating well has nothing to do with a “diet.” It’s part of an everyday healthy lifestyle. That’s why it’s important to start with small steps such as ditch the salt shaker. It’s a killer – literally!

And add more seafood, fruits, whole-grain bread, and vegetables to your grocery cart.

Always check with your doctor or dietician first if you have a specific medical condition.

And, remember: It’s not about a diet. It’s about a lifestyle!

 

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

 

                                    Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

 


Tags: massachusetts estate planning strategies, Health Care, Massachusetts, health, medical, 2014, Healthy Eating, balanced diet, lifestyle

Medicaid & Marriage, Do They Go Together?|Massachusetts Elder Law Attorney

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Wed, Feb 19, 2014

Medicaid, Marriage, Estate Planning

 

Ted called me concerning his step-mom, Roberta.  Roberta is in the hospital but about to be transferred to a nursing facility where she will remain on a long term basis once Medicare coverage stops.  The conversation quickly turned to Medicaid.

Ted explained that Dad and Roberta have been married 5 years.  Roberta came into the marriage with very few assets.  Dad owns the home where Ted and his brother grew up, worth approximately $500,000, and another $500,000 of additional investments.  His mom died about 10 years ago and Dad, seeking companionship, reconnected with Roberta, an old high school classmate.  Ted told me that Roberta has a daughter with whom she has no relationship and who is no help at all in caring for Roberta.

Ted’s $64,000 question was, “How much does Dad have to spend down towards Roberta’s care before she can qualify for Medicaid?”  He told me that Dad had always intended to leave his assets to Ted and his brother when he dies but now is concerned about whether that will happen.

I asked Ted some preliminary questions.  Neither Dad nor Roberta has any long term care insurance.  They also do not have a prenuptial agreement in place, although even if they did, Dad would have to divorce Roberta to invoke that agreement and protect his assets from being spent down towards her care.

So, where does that leave them?  Next time I’ll tell you.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique educational and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops, call 800-964-4295 and register to learn more about what you can do to enhance the security of your spouse, home, life savings and legacy.

Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

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Tags: Estate Planning, Medicare, Medicaid, MassHealth, Health Care, medicaid qualification, 2014

Massachusetts Elder Law Attorney | Plan Ahead for Long Term Care

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Mon, Feb 11, 2013

If you were ever a Boy Scout or Girl Scout, you remember the motto: Be Prepared.

That motto still makes sense: be prepared, especially where your health and your finances are concerned.

The following are important issues to discuss with your attorney before a crisis.

FAMILY DYNAMICS

I always tell clients that, when considering long-term care needs, they need to consider family dynamics. Are there squabbles or resentments? If so, these will probably intensify in a crisis situation.

LEGAL ISSUES

Are your legal documents up to date? If so, you're in the minority. In addition to discussing inheritance issues, I always discuss with my clients any changes they may need to make in their will or trust. Family circumstances are always changing - births, deaths, divorces, self-destructive behavior by heirs, second marriages, etc. If your documents aren't appropriate for NOW, they're not appropriate - period!

THE DOCUMENTS - ADVANCE DIRECTIVES, DURABLE POWER OF ATTORNEY, HEALTH SURROGATE, LAST WILL & TESTAMENT, LIVING WILL

These documents have to meet legal requirements, and must leave no room for doubt. And if you try the do-it-yourself approach, they may not be recognized as legal.

ARRANGING FOR FINANCIAL DECISIONS TO BE HANDLED IF YOU CAN'T

If you don't do this, you could be subjecting your family to a long and tortuous Guardianship proceeding in court. And if you don't do it right, you may be disqualified from receiving Medicaid or Veterans' benefits.

FIRST-STEP FINANCIAL ISSUES

How do I pay for long-term care insurance? Many people don't even realize they may be entitled to Medicaid or Veterans' benefits, or other resources.

CAREGIVER ISSUES

You'll need to know about community resources, housing options, caregiver options, Care Managers, etc.

No doubt you've got questions. We have the answers.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique education and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops. Call 800-964-4295 to learn more about what you can do to enhance the security of your family and legacy. 

 lawyer, attorney, bostonClick Here to Register For Our Trust, Estate & Asset  Protection Workshop

 

 

Tags: living will, health care proxy, HIPAA, Estate Planning, Elder Law, Health Care, family, seniors, life-care plan

Massachusetts Estate Planning Lawyer | Jill Saved $30,000 - Part Two

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Mon, Feb 04, 2013

Medicaid, Medicare, Fiscal Cliff, Seniors, Estate Planning, MassachusettsLast week we were talking about Jill, who tried to apply for Medicaid for her grandfather, but ran into a snag. She provided the Medicaid caseworker with 5 years of financial records and was told that Granddad still had to spend down another $30,000 from accounts that Jill never knew existed.

When we looked at the statements Jill gave to Medicaid, it was clear that the $30,000 in question was in two Uniform Gift to Minors Act accounts, for which Granddad was acting as custodian for Jill.  We asked her why she gave those documents to Medicaid and Jill didn’t have a good answer. “I just figured I would give them everything and they would tell me when he would be eligible and what I needed to do”, she replied.

It’s a very common response. Many people are under the erroneous belief that the Medicaid application process is a simple one. They know there is a penalty if they gift money but, Jill’s Grandfather hadn’t done that.  He legitimately spent down all the assets so she thought she would just walk into the Medicaid office and tell them that, hand over everything and it would all be fine.  Unfortunately, it rarely works out that way and what you don’t know can really hurt you. You can’t rely on the state Medicaid caseworker because so often they are wrong. That was the case here.

You see, when Granddad set up the UGMA accounts 30+ years ago, when Jill was a young child, he irrevocably transferred the money into those accounts for Jill’s benefit. He remained a custodian of those accounts until Jill reached 21, entrusted to manage those funds for her benefit. We explained to Jill that for Medicaid purposes those funds were no longer Granddad’s so they shouldn’t be counted as his. The caseworker was wrong to tell her to cash out the accounts and spend down the funds for Granddad.

What Jill needed to do now was to transfer those accounts to her name. She was now 45 so that should have happened 24 years ago. I told her that under the UGMA law she was entitled to access those accounts. And if you’re wondering whether the transfer to an account in her name will cause a Medicaid penalty, the answer is no!  The money was transferred out of Granddad’s name more than 5 years ago when he made the irrevocable transfer, so it wouldn’t fall within the Medicaid look back period.

In fact, Granddad was taking the interest all these years, some of which went towards paying for his long term care in his later years. In other words, some of what was legally Jill’s money went towards Granddad’s care already so Medicaid shouldn’t complain about that.

Jill understood what we were saying but asked if we would step in and assist her to complete the process.  Several months later we received a favorable decision.  Jill was able to keep the $30,000 and Granddad was approved for Medicaid.

Jill was appreciative and understood the mistake she made.  We told Jill that her mistake was in relying on the state to steer her in the right direction. Luckily, we were there to save the day and save Jill $30,000.

At the Estate Planning & Asset Protection Law Center, we help people and their families learn how to protect their home, spouse, life-savings, and legacy for their loved ones.  We provide clients with a unique education and counseling approach so they understand where opportunities exist to eliminate problems now as they implement plans for a protected future.

We encourage you to attend one of our free educational workshops. Call 800-964-4295 to learn more about what you can do to enhance the security of your beneficiaries, digital assets, Estate Plan and legacy.

Click Here to Register For Our Trust, Estate & Asset  Protection Workshop

Tags: long term care, Medicare, Baby Boomers, Medicaid, Health Care, assisted living, medicaid qualification, Elder Law, Attorney

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