Time & Life Update Newsletter

INACTION COULD COST YOU YOUR LIFE SAVINGS: TAKE STEPS TO AVOID NURSING HOME POVERTY

Posted by Massachusetts Estate Planning & Elder Law Attorney, Dennis B. Sullivan, Esq., CPA, LLM on Aug 20, 2012 1:13:00 PM

Changes in Health Care Law, Medicare, Medicaid, & MassHealth As Well As Estate Taxes…How do They Affect you?

The rules of paying for nursing home care can, quite frankly, get so complicated it makes your head spin! 

elder law, estate planning, health care reform, taxesWe find that many families want to cut to the chase and find out now what their own personal bottom line is.  If that’s you... if you want to know now how you might become eligible for protection and how much you might save, then call our office at (781) 237-2815 and let’s explore whether or not you’re likely to qualify and what you might be able to do if you would like to protect you spouse, home, and life savings.

If you stop for a minute and think about your retirement and life savings, you may have assets in lots of different places. MassHealth, however, focuses on dividing your financial assets into three different categories:  

1.      Available Assets; 2. Exempt Assets; 3. Unavailable Assets

What You Need to Know

Newton Couple Discovers Secret Protect Their Home & Life Savings  While Avoiding Payment  of Unnecessary Taxes

The main focus of MassHealth is the available assets.  This category is made up of assets that you could cash in and use for your own nursing home care. Available assets are also referred to as "countable resources." MassHealth views your available assets, the ones you should cash in and send every month to the nursing home, at a whopping $12,000 to $15,000 a month.

Most people do not have that kind of extra savings to pay for one or both spouses to go to a nursing home.  If one is in a nursing home, the couple’s life savings must be spent down to $115,000.  You read that right, if you do nothing, everything you own including your home, your IRA, and your entire life savings is at risk.  This is the government’s plan for your money.  It does not, however, have to be that way; you can override the government…but only if you take some important steps that many others have taken successfully to plan for their spouse and family.

The Good News: Planning Ahead & Taking Action Could Save Your Family Hundreds or Thousands of dollars

By taking action and implementing a Family Protection Plan, people and their families can avoid the required spend down, qualify for MassHealth, and still get the care they need.  Do you want your hard earned life savings taken from your spouse & family to pay for your nursing home care?  Would you rather leave a lasting legacy for your spouse, children, and grandchildren?  Call our office today at (781) 237-2815 to begin discussing how you can avoid nursing home poverty and protect what matters most: your spouse, home and life savings.  If you would like to attend a free educational workshop call (800) 964-4295 (24/7). 

 Click Here to Download the Seniors  Guide to Health Care Reform & Avoiding  Nuring Home Poverty

Will Medicare Pay for Your Alzheimer’s Care…Unfortunately, No!

One of the most common questions we are asked is, “Will Medicare pay for Alzheimer’s care?  The simple answer is, NO, the Medicare will not pay for long-term care expenses, but Medicaid will. As a result, the burden of financing long-term care is placed on you, your life savings, and your family.  If you do nothing, the cost of long-term care will come out of your pocket.  It is crucial that you take action to avoid having to spend down your assets to pay for long-term care.

Recent studies have shown one half of all people over 80 will develop Alzheimer’s or another form of dementia.  Because so many people are being diagnosed with Alzheimer’s or dementia, we have developed the free online resource center (www.BostonMemoryLawyer.com) to help people at every stage of the Elder Care Journey care for and protect their loved one with dementia or Alzheimer’s.

Recent Changes in the Law that Affect the Lives of Millions of Older Americans

With all the uncertainty in the tax law, the NEW HEALTH CARE LAW, shrinking federal and state budgets, combined with a growing senior population, a perfect storm is brewing.  More and more seniors are going to need care with less money available to pay for care.  An increasing number of seniors and families will be at risk of loosing everything to increasing health care and nursing home costs.  Did you know that according to recent estimates, released on July 24, 2012,  by the Congressional Budget Office, repeal of the new health care law would increase spending for Medicare by an estimated $716 billion over ther period from 2013 through 2022?

To learn more about how the new Health Care Laws affect older Americans, please see our new report, “Seniors Guide to Health Care Reform & Avoiding Nursing Home Poverty”, which contains information on the newly passed health care laws all seniors need to know.

What About How the Changes in the Estate Tax Law Will Affect you?

Additionally, significant estate tax changes are on the horizon.  The estate tax exemption, currently at $5,120,000, will be reduced to $1 million. On January 2, 2013, the current top tax rate of 35% will increase to 55%.  The Massachusetts estate tax exemption will remain at $1 million per person, with no portability.  These looming changes are an important aspect of planning to consider in reviewing or creating your estate plan. 

With all the changes in the law, finances, health, and personal circumstances, there is a tremendous amount of uncertainty.  It does not have to be that way.  If you'd like to understand how the changes affect you and your planning, as well as what steps you can take right now to protect you family, give us a call at (781) 237-2815. Our experienced team of caring and compassionate professionals can show you how MassHealth "sees" your life savings and if they will force you to spend them. We help families protect their lifesavings by transforming some of your "available" life savings into exempt, unavailable and even protected assets.

You Gain Understanding & Control

Research shows that 86% of trusts don’t work.  That’s why we developed our Unique Self-Guided 19-Point Trust, Estate, & Asset Protection Legal Guide, so you can learn where problems may exist in your planning as well as opportunities for improvement and how to implement a plan to protect your spouse, home, family, and life savings.  Click Here to Download the Guide.

Click Here to Download our Trust, Estate, & Asset Protection  Legal Guide

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, even with all these changes.

Register NOW for a Trust, Estate, & Asset Protection Workshop and receive a free Unique Self-Guided 19-Point Trust Estate & Asset Protection Legal Guide with a BONUS DVD  

Nursing home care is more than $140,000-$180,000 per year! Attend this FREE educational seminar to learn:  

  • How to protect your home and assets from the costs of long-term care

  • How to stay out of the nursing home and access in-home care

  • How to make sure your spouse is not left financially ruined if you need nursing home care

  • How to access Veterans benefits to pay for long-term care

  • How the MA & Federal Estate Tax Changes Affect You & Your Family

       To register call (800) 964-4295 (24/7) or online at www.SeniorWorkshop.com 

 

PS:  All those who attend a workshop will receive our new report, “Seniors Guide to Health Care Reform & Avoiding Nursing Home Poverty”, which contains information on the newly passed health care laws all seniors need to know.  

PPS:  The Elder Care Journey is difficult to navigate, but with the help of our team of trusted advisors to guide you, the trip becomes a whole lot easier.    Taxes and Health Care are important areas in which people and their families need to know who to trust. Click here to see what others are saying about their experience working with a team of dedicated, caring, passionate professionals at the Estate Planning & Asset Protection Law Center.

 

Tags: asset protection, elder care, Elder Law, budget cuts, Debt Ceiling, Estate Planning, GST tax, gift tax, estate tax