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Senior Solutions of Michigan L.L.C.
143 Cadycentre, #221
Northville, MI 48167
Margie Mackson
(248) 444-9590
Carolyn MacMillan
(248) 763-6319
Contact us at info@seniorsolutionsmi.com
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Accettura & Hurwitz provides unparalleled expertise combined with comprehensive legal services to assist families through the natural transitions of life.
Our goal is to minimize or eliminate tax, avoid probate, allow you to control the disposition of your assets both during life and after death, and preserve the assets of elders in need of assisted living or nursing home care.
We have provided legal assistance to thousands of clients throughout the State of Michigan. To assist you with financial planning, we specialize in Medicaid Planning with Long Term Care and Veterans Benefits.
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VETERAN BENEFITS
Aid and attendance benefits are available to veterans and their spouses who are at least sixty-five years of age. These benefits assist them with the cost of in-home care, assisted living, and nursing home care. Veteran’s Administration (VA) aid and attendance is perhaps most beneficial for veterans and their spouses who require an assisted living arrangement since Medicaid does not cover assisted living.
To be eligible, the veteran must have had ninety consecutive days of active duty with at least one of such days during war-time. The veteran need not have been wounded in action or have suffered a service related disability. The veteran must have received a discharge that wasn’t dishonorable, and the veteran and his or her spouse must meet the income and asset requirements.
To meet the asset test, a married veteran must have less than $80,000 of assets, and a single veteran (or veteran’s surviving spouse) less than $45,000 (excluding a residence, car, and prepaid funeral). To meet the income test, a married veteran must have income less than $21,615 and a single veteran (or the veteran’s surviving spouse) less than $18,234. Although these limits may seem low, they are very attainable. With no look back period and no divestment penalty, assets may be gifted to the veteran’s children either directly or in trust. The income test is attainable since the cost of assisted living is deducted in arriving at countable income.
It is critical that a VA accredited elder law attorney such as those at Accettura & Hurwitz advise you on the interrelation between aid and attendance and Medicaid eligibility. When qualifying for aid and attendance benefits, care must be taken to not negatively impact Medicaid eligibility. Transfers made in order to qualify for aid and attendance will cause Medicaid ineligibility if made within five years of entering a nursing home. A common strategy employed by Accettura & Hurwitz for relatively healthy veterans is to divest assets, apply for aid and attendance, and to start the five year look back clock ticking for Medicaid eligibility purposes.
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MEDICAID PLANNING WITH LONG-TERM CARE
For some reason, most of us do not like to think about the future and what might happen. Yet, many of us are experiencing the realities of elder family members needing extensive long term or nursing home care, right now!
Medicaid is often the only assistance program available to help pay for nursing home care. However, Medicaid will only pay for the costs of nursing home care if the patient is impoverished.
The Medicaid eligibility rules define what assets must be included and what may be excluded. The rules also address what married couples may keep so that one spouse will qualify for Medicaid without also completely impoverishing the spouse living in the community.
ELIGIBILITY REQUIREMENTS - There are primarily four requirements in order for Medicaid to pay nursing home costs.
- A. NON FINANCIAL REQUIREMENTS: A person must be at least 65 years of age, blind or disabled, and be a U.S. citizen or a resident alien.
- B. MEDICAL NECESSITY: The applicant must meet the medical eligibility requirement for Medicaid.
- C. INCOME: Monthly income cannot exceed costs of long term care and other medical expenses.
- D. ASSET ELIGIBILITY: The maximum in assets a person may own is $2,000.00 subject to many exceptions. A person should not think that if their amount of
assets greatly exceeds $2,000.00 that nothing can be done. There is usually an array of techniques available for legally preserving assets without losing it all. The base amount for both spouses entering a nursing home and applying for Medicaid is $3,000.00, also subject to many exceptions.
PENALTY PERIOD - A penalty period may result when a resource is transferred out of the patient's control within 60 months from the date of the Medicaid Application. This is called "divestment" and Medicaid will not pay for the costs of long term care during the penalty period. Divestment can occur whenever property is given away, a name is taken off a bank account, or a name is placed on a deed.
Divestment should only be done in an informed manner. Some divestment may leave the patient without any funds and without any way to pay for nursing home costs. The Deficit Reduction Act of 2005 drastically changed the manner in which divestment penalties are calculated. The new law can cause severe Medicaid penalties against anyone who has given resources away after February 7, 2006.
You should begin planning for Medicaid as soon as possible, to take advantage of all options available. An experienced elder law lawyer will explain how, through trusts, title changes, and gifting, you may be able to pass on some of your estate to your heirs before you qualify for Medicaid. Other Medicaid trusts are designed to preserve assets for your quality of life while you are receiving government benefits. You do not necessarily have to spend down as quickly as it seems.
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Accettura & Hurwitz Attorneys and Counselors are experienced in Michigan Veterans Aid and Assistance Benefits, Medicaid and Estate Planning. Contact us today!
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Sam Hurwitz