K. Gabriel Heiser
Attorney, author, Medicaid asset protection planning
K. Gabriel Heiser, J.D., is an attorney with over 25 years of experience in elder law and estate planning. He is the author of "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets," an annually updated practical guide for the layperson.
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My mom's trust states that when she can no longer take care of herself, I will have POA. Should we find an at...
I think you may be confusing the POA (Power of Attorney) with a trust document. I think possibly you mean that the trust names you as the... I think you may be confusing the POA (Power of Attorney) with a trust document. I think possibly you mean that the trust names you as the successor Trustee of your mom's trust if she is unable to serve as her own Trustee, which is quite common. In any event, it is not necessary that your new attorney be from the same county as your mom, so long as they are licensed to practice law in the same state. As for paperwork, there may or may not be a requirement to file the change of Trustees; if the trust owns real estate, then it would be advisable to record the change in Trustee, so that when you sell the house there will be a document showing you have authority to sign the deed, etc. see more
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Can I delegate POA to some else?
Typically, the named agent under a Power of Attorney can NOT delegate his/her authority and powers to someone else, absent specific... Typically, the named agent under a Power of Attorney can NOT delegate his/her authority and powers to someone else, absent specific language in the POA form that allows them to do so. see more
Question
In Texas there is a "look-back" clause of 5 years after a house is deeded to children. Can we now sell her hom...
It's not the current value of the house that matters, it's the value at the time of the gift (that is, when she signed the deed... It's not the current value of the house that matters, it's the value at the time of the gift (that is, when she signed the deed giving the children an interest in the house). So you'll need to find out the assessed value as of that date to calculate the value of the gift, assuming she applies for Medicaid within 5 years of that date. see more
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In Texas there is a "look-back" clause of 5 years after a house is deeded to children. Can we now sell her hom...
If you sell the house, someone with legal authority to sign for your mother will also have to sign the deed on her behalf, because she is... If you sell the house, someone with legal authority to sign for your mother will also have to sign the deed on her behalf, because she is still a part owner. Following the sale, a portion of the net proceeds will belong to your mother. To find the percent she is entitled to, you need to consult a "life estate" table. For example, if she is 85 years old, she is entitled to approximately 35% of the net proceeds. The older the owner of the life estate is, the smaller their percentage would be, under the tables.
If you sell her home, her share of the proceeds will make her ineligible for Medicaid until she spends down the money or converts it to a non-countable asset. I suggest a number of these in my book "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets" , or consider consulting with an elder law attorney in your area. see more
If you sell her home, her share of the proceeds will make her ineligible for Medicaid until she spends down the money or converts it to a non-countable asset. I suggest a number of these in my book "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets" , or consider consulting with an elder law attorney in your area. see more
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Can Medicaid take your parent's home to pay for nursing care if the caregiver is joint owner?
A living trust offers no protection from Medicaid eligibility and indeed can convert an exempt asset (such as the home) into one that... A living trust offers no protection from Medicaid eligibility and indeed can convert an exempt asset (such as the home) into one that counts against you if you apply for Medicaid. This is a common misunderstanding. see more
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I am confused about Medicare, Medicaid and Private Insurance benefits. Where do I start?
If the house was transferred at least 5 years before your mother applies for Medicaid, then she will immediately be eligible, assuming she... If the house was transferred at least 5 years before your mother applies for Medicaid, then she will immediately be eligible, assuming she has no other assets (a person can have no more than $2,000 in countable assets!). It will be important to find out the exact date she signed the deed to her three sons' names; it may turn out that she should wait until the expiration of the five-year period. see more
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Can Medicaid take your parent's home to pay for nursing care if the caregiver is joint owner?
For Medicaid purposes, a house cannot be in a living trust without it losing its exempt status. You need to confirm this with an attorney... For Medicaid purposes, a house cannot be in a living trust without it losing its exempt status. You need to confirm this with an attorney in your state, but even assuming this is so, if the spouse at home sells the house before the nursing home spouse applies for Medicaid, it will not cause any adverse issues. see more
Question
Will my mother still be eligible for Medicaid if I claim her on my taxes?
As Jon Beyrer indicated above, the mere claiming of a parent as a tax deduction will have no effect on the parent's eligibility for... As Jon Beyrer indicated above, the mere claiming of a parent as a tax deduction will have no effect on the parent's eligibility for Medicaid or Medicare.
When a person applies for Medicaid, the state will tally up all of that person's assets and income, and if they are below a certain amount, then the individual may qualify for Medicaid. So if the child is paying ongoing expenses of the parent, such payments are being used up every month and won't accumulate to cause the parent to be disqualified from Medicaid.
Medicare, on the other hand, does not look at one's financial situation at all. Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years in Medicare-covered employment and you are 65 years or older and a citizen or permanent resident of the United States. see more
When a person applies for Medicaid, the state will tally up all of that person's assets and income, and if they are below a certain amount, then the individual may qualify for Medicaid. So if the child is paying ongoing expenses of the parent, such payments are being used up every month and won't accumulate to cause the parent to be disqualified from Medicaid.
Medicare, on the other hand, does not look at one's financial situation at all. Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years in Medicare-covered employment and you are 65 years or older and a citizen or permanent resident of the United States. see more
Question
How can I find a local Medicaid adviser?
I actually discuss how to find a qualified elder law attorney with Medicaid experience in my book "How to Protect Your Family's... I actually discuss how to find a qualified elder law attorney with Medicaid experience in my book "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets", but in a nutshell, you want to be sure that the elder law attorney actually does know about Medicaid planning. Not all elder law attorneys handle such cases, so be sure to ask. Also ask their fees over the phone, since they can vary all over the lot! Another tip is to check who teaches other attorneys Medicaid planning and law updates; call your local bar association and try to find that out. You can be confident such attorney seminar leaders are well qualified. Finally, check online at www.NAELA.org, where you can search for an attorney by zip code and even by specialty. Good luck!! see more
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Is there a cap for bills paid out of pocket?
You are also correct in that once she enters a facility, virtually all of her income must be paid over to the facility, and Medicaid will... You are also correct in that once she enters a facility, virtually all of her income must be paid over to the facility, and Medicaid will pick up the balance of the bill once she qualifies for Medicaid. see more
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Is there a cap for bills paid out of pocket?
I believe the income limit is currently $2,094 (in most states) not $1,999. Perhaps you're thinking of the ASSET limit, which is indeed... I believe the income limit is currently $2,094 (in most states) not $1,999. Perhaps you're thinking of the ASSET limit, which is indeed $2,000. So she cannot accumulate cash or other countable assets that add up to over $2,000 TOTAL see more
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Is there a cap for bills paid out of pocket?
A person in a nursing home or assisted living facility who qualifies for Medicaid must pay over almost all of their income to the facility... A person in a nursing home or assisted living facility who qualifies for Medicaid must pay over almost all of their income to the facility and may not continue to pay the mortgage on their house out of their income. If the person receiving HCBS (Medicaid for at-home residents) has income less than $2,094 (for year 2012) they can retain that income; if their income is over that, it typically must be spent down on medical expenses or held in a special Qualified Income Trust, depending on the state Medicaid rules. see more
Question
Comparison of Medigap plans and Part D plans-where can I go for help?
The federal government's Medicare Plan Finder can help you sort this out: https://www.medicare.gov/find-a-plan/questions/home.aspx Good... The federal government's Medicare Plan Finder can help you sort this out:
https://www.medicare.gov/find-a-plan/questions/home.aspx
Good luck! see more
https://www.medicare.gov/find-a-plan/questions/home.aspx
Good luck! see more
Question
My mother doesn't qualify for Medicaid. How can we get help for her care?
As an elder law attorney I might be biased, but...I would say that the cost of an elder law attorney who specializes in Medicaid planning... As an elder law attorney I might be biased, but...I would say that the cost of an elder law attorney who specializes in Medicaid planning is well worth the money. Some charge a flat fee for an entire plan while others charge by the hour. Be sure to discuss fees in advance so you know what you are getting into before the first appointment. If the person who needs to apply for Medicaid really has no money then as stated above they will immediately qualify for Medicaid. see more
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If I am on a joint checking account with my mother, how does the money in her checking account affect her elig...
I AM an elder law attorney and the answer is this: If a person applies for Medicaid has a joint account, ALL the money is deemed owned by... I AM an elder law attorney and the answer is this: If a person applies for Medicaid has a joint account, ALL the money is deemed owned by that person unless the other joint owner of the account can prove they contributed funds to the account (by showing how their share of the funds in the account got there, tracing the funds from some other bank, etc.). If indeed all the money in the account actually belongs to the Medicaid applicant (your mother, in this case), then that's not an issue. But what could be an issue is how the account is titled: If it is an "or" account (that is, either joint owner can withdraw money or write a check on the account) then creation of the account (adding your name to your mother's account) is not an issue when your mother applies for Medicaid. However, if it is an "and" account (that is, checks or withdrawals require BOTH signatures--yours and your mother's), then creation of the account from an account that had been solely in the name of your mother IS A GIFT as far as Medicaid is concerned. Their reasoning is that if your mother previously had full control over her account, but now must get your permission, then this loss of control to you is deemed a gift. As a result, it could mean a penalty period if she applies for Medicaid within 5 years of creation of the joint account.
So, in summary: if all the money is your mother's, and either person on the account can separately withdraw that money, then there is no problem with the joint account.
For more info on this and other Medicaid planning rules and techniques, see my book "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets", . Good luck!!
--K. Gabriel Heiser see more
So, in summary: if all the money is your mother's, and either person on the account can separately withdraw that money, then there is no problem with the joint account.
For more info on this and other Medicaid planning rules and techniques, see my book "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets", . Good luck!!
--K. Gabriel Heiser see more
Question
Can my mother get Medicare and Medicaid at the same time?
Yes, people who receive both Medicare and Medicaid are called "Dual Eligibles." The federal government has information online... Yes, people who receive both Medicare and Medicaid are called "Dual Eligibles." The federal government has information online about the programs here:
https://www.cms.gov/apps/firststep/content/medicare_dualelig.html see more
https://www.cms.gov/apps/firststep/content/medicare_dualelig.html see more
Question
How long does a Purple Heart veteran receive VA benefits?
The federal government has posted some very helpful information on a veteran's access to nursing home and other health care assistance... The federal government has posted some very helpful information on a veteran's access to nursing home and other health care assistance here:
http://www.va.gov/healtheligibility/
If the veteran does not qualify for VA benefits, then the state Medicaid program may cover them depending on their assets and income level. If they are "poor enough," then they should definitely qualify for Medicaid coverage for 100% of their nursing home expenses. see more
http://www.va.gov/healtheligibility/
If the veteran does not qualify for VA benefits, then the state Medicaid program may cover them depending on their assets and income level. If they are "poor enough," then they should definitely qualify for Medicaid coverage for 100% of their nursing home expenses. see more
Question
How long should it take a lawyer to make up a new will, a Power of Attorney directive, and a health care proxy...
Having been an estate planning and elder law attorney for 25 years, and having drafted hundreds of wills, trusts, and powers of attorney... Having been an estate planning and elder law attorney for 25 years, and having drafted hundreds of wills, trusts, and powers of attorney for my clients, I would say that a reasonable time for an attorney to complete all these documents would be a few weeks at most. The attorney should advise you at the first meeting how long it will be to complete everything; if things are delayed for some reason, the attorney should be calling YOU to explain why! I don't like the sound of how things are going with this attorney and agree with the others that you may want to try to move on. Unfortunately, if the lawyer has already spent time on your case, he may feel justified in sending you a bill for the time spent to date. You will have to review your agreement with the attorney (if any). Sometimes telling the attorney that you are upset and are considering filing a complaint with the local legal ethics board will (a) light a fire under the attorney or (b) convince the attorney to let you move on and not bill you.
I would not recommend free or online services if you are doing any elder law-type planning as well as a simple will, etc. The online or office supply forms omit all the special provisions you need in such cases and are not worth the small savings you get by avoiding the attorney. In general this rule applies regarding legal fees: "pay me now or pay me later" (i.e., you'll wind up needing an attorney to straighten things out later if you cheap out with store-bought forms now). see more
I would not recommend free or online services if you are doing any elder law-type planning as well as a simple will, etc. The online or office supply forms omit all the special provisions you need in such cases and are not worth the small savings you get by avoiding the attorney. In general this rule applies regarding legal fees: "pay me now or pay me later" (i.e., you'll wind up needing an attorney to straighten things out later if you cheap out with store-bought forms now). see more
Question
Can Medicaid take your parent's home to pay for nursing care if the caregiver is joint owner?
Like other states, Louisiana is under an obligation to seek recoupment of its Medicaid payments by filing a claim against the estate of the... Like other states, Louisiana is under an obligation to seek recoupment of its Medicaid payments by filing a claim against the estate of the former recipient of Medicaid benefits, following the death of that recipient. In other words, upon your mother's death, because the state paid for her care under Medicaid, her estate owes the state for those payments. The state may only claim an amount no greater than the total amount of the benefits it paid out for her while she was living, but if that amount is more than the value of the house, then they may indeed force the sale of the house to repay them. see more
Can someone explain what the 5-year "look back" period for Medicaid is?
1. $13,000 gift exemption: This figure relates solely to a Federal GIFT TAX exemption and has no relation to Medicaid rules. Anyone concerned with Medicaid coverage will never make anywhere near the $5,120,000 of lifetime gifts permitted before a federal gift tax is due! Thus, for all practical purposes, the $13,000 limit can be ignored for anyone worried about Medicaid.
2. 5-Year Lookback: As stated by others above, when a person makes a gift of virtually any amount within the 5-year period preceding the date that person applies for Medicaid, those gifts are added together and will result in a disqualification period. The length of the disqualification (or "penalty") period depends on the total amount of the gifts made within the 5-year period and also the penalty divisor of the state where they are applying for Medicaid. For example, in a state where the penalty divisor is $5,000, if the total gifts made within the lookback period equal $50,000, then the penalty will be 10 months.
So the bottom line is that there is NO minimum amount a parent can gift their children to avoid the 5-year lookback period. But once 5 years has passed following a particular gift, that gift will no longer count when the person who made the gift applies for Medicaid.
I hope that helps! see more