Answers to Your Long-Term Care Planning Questions
- Why should we use an elder law attorney?
- If I have to be admitted to a nursing home, how will I pay for it?
- Do I have to spend all of my assets before I qualify for Medicaid?
- Are
there any assets that I can keep in addition to the $2400 and what can I
save through advanced planning with the aid of a competent elder law
attorney?
- What is the difference between Medicaid and Medicare?
- If I go into a nursing home can I give assets to my spouse and still qualify?
- If
I still own my house at the time of my death and my house is sold after
I die, won't the Pennsylvania Department of Welfare have a lien on it
in the amount of medical assistance (Medicaid) paid for my long term
nursing care?
- How important is estate planning?
- What should be included in a durable property power of attorney?
- Should I have a durable health care power of attorney and a living will?
- What is meant by an estate administration?
1: Why should we use an Elder Law Attorney?
Senior
citizens have a different set of legal problems. For the public at
large, elder law attorneys deal with these problems on a daily basis and
can guide you through the complexities. The decisions which seniors
make will impact their lives as well as the lives of their loved ones.
Hiring an elder law attorney will enhance your ability to make the
correct decisions allowing you or your loved one to age with security
and dignity.
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2. If I have to be admitted to a nursing home, how will I pay for it?
There
are three possible ways to pay for nursing home care. These are long
term care insurance, Medicaid and private pay, i.e. your own assets.
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3. Do I have to spend all of my assets before I qualify for Medicaid?
You
do not have to spend all of your assets before you qualify for
Medicaid. While technically as a single person you have to "spend down"
to $8,000 or $2,400 (depending upon your monthly income) before you are
eligible for Medicaid, advanced planning, through the aid of an attorney
who is knowledgeable in this area, can help you avoid spending all of
your hard earned assets on the cost of a nursing home. The law is more
flexible for married couples and it is possible that with proper
planning you may be able to retain the majority of your assets.
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4.
Are there any assets that I can keep in addition to the $2400 and what
can I save through advanced planning with the aid of a competent elder
law attorney?
There are assets that you can keep. These
include your principal residence, a small amount of life insurance,
items of tangible personal property such as personal effects and
household furnishings and equipment, one automobile, property used in a
trade or business, prepaid funeral arrangements and burial reserves.
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5. What is the difference between Medicaid and Medicare?
Medicare
will only pay for a maximum of 100 days in a skilled nursing facility
and only the first 20 days are covered in full. Medicaid on the other
hand will pay the entire cost of long-term custodial care in a nursing
home if the person qualifies.
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6. If I go into a nursing home can I give assets to my spouse and still qualify?
When
you go into a nursing home you can give assets to your spouse and still
qualify. The law permits a spouse to keep up to a current maximum of
$104,400 in assets. In fact, the present state of the law will also
permit even a greater amount under certain circumstances. Proper
guidance from a qualified elder law attorney will help you get all you
are entitled to.
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7.
If I still own my house at the time of my death and my house is sold
after I die, won't the Pennsylvania Department of Welfare have a lien on
it in the amount of medical assistance (Medicaid) paid for my long term
nursing care?
Yes. However, there are advanced legal
techniques such as the creation of life estates that will permit you to
keep your home until you die and avoid the imposition of a Medicaid lien
when your heirs go to sell your home. Again the advice of a competent
elder law attorney is essential.
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8. How important is estate planning?
Estate
planning is extremely important. Simply put, without a properly written
will or trust there is no guarantee that the people who you want to
receive your property after you die will in fact receive it. Wills and
trusts are legal documents and should always be prepared with the advice
of an attorney, preferably one who is knowledgeable in this area of the
law.
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9. What should be included in a durable property power of attorney?
In
most situations your agent (the person or persons to whom you grant the
power to act on your behalf) should have expansive powers to properly
handle your particular financial matters. One such power may be to
permit your agent to make gifts in excess of the annual exclusion amount
of $12,000. This is especially important in those limited situations
where gifting becomes part of an overall planning strategy to achieve
eligibility for Medicaid.
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10. Should I have a durable health care power of attorney and a living will?
By
all means, you should have a durable health care power of attorney and a
living will. Wills, trusts and durable property powers of attorney
generally address only financial concerns. A health care power of
attorney authorizes another individual to make medical/health care
decisions on your behalf when you are unable to make those decisions
yourself. A living will generally sets forth your choices as to end of
life care and treatment.
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11. What is meant by an estate administration?
Estate
administration can be explained as follows. When individuals die it is
still necessary to pay their bills and distribute their property
according to their written intentions (usually a will or trust). The
process of doing these things, along with paying taxes where applicable,
is what is known as an estate administration. Any person authorized to
handle a decedent's financial affairs (i.e., an executor/executrix or an
administrator/administratrix) should obtain the services of a lawyer
who routinely handles these matters.
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