Your house needs to be protected from the nursing home both while you are living and after you die.

During Your Lifetime

When you apply for Medicaid to pay for the nursing home, your house will be protected during your lifetime so long as you indicate on the Medicaid form that you intend to return to your home.  Even if it looks clear that you will never return home, mark that you do intend to return home; this is a formality that must be honored to protect your house.

After Your Death

When you receive Medicaid to pay for long term care, the state will try to get repaid for monies spent on your care, through a process called “estate recovery.”  To avoid estate recovery and the taking of your house, you must plan ahead well in advance.

Two Planning Methods

The two most common planning methods are the use of a life estate and an irrevocable trust.

The life estate strategy consists of drafting and filing a new deed to your house; the deed allows you a life estate interest in the house and your beneficiaries own the remainder interest.  You own the house when you’re alive; your beneficiaries, automatically, own the house at your death.  Be aware that this technique is not available in all states so you must get legal advice before you proceed.

The trust strategy is similar; the deed transfers the house into a trust.

In both strategies, the house is outside of your estate; and, is, therefore, not subject to estate recovery.

Because of nursing home transfer look-back periods, the sooner you plan the better; but, never hesitate to get good legal advice from an elder law attorney, even if you think it’s too late.  You can protect your home from the nursing home.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

The nursing home “look-back period” is the length of time Medicaid officials can look back to see whether any transfers have been made, for the sake of qualifying for Medicaid to pay for the nursing home.  Medicaid officials are only concerned about the transfer of assets for less than fair market value.

You must disclose all assets for less than fair market value on your Medicaid application.  The bottom line is that you can’t give all of your assets away today, so that you qualify for Medicaid tomorrow.

In 2012, the look-back period is 60 months; that’s 5 years.  This is the look-back period only, not the disqualification period.

This means that if you gave away any assets for less than the real value, you will be disqualified for some period of time.  It does not mean that you are disqualified for the entire 5 years.  The disqualification period is determined by the size of the gift.

Do not try to transfer assets for the sake of qualifying for Medicaid on your own; the process is complex and if you make a mistake, you may be unnecessarily disqualified from receiving Medicaid to pay for your long term care.  A mistake may cost you and your family thousands and thousands of dollars.  Always work in consultation with an elder law attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Paying for long term care in a nursing home is a challenging task that may seem overwhelming.  You’ve likely heard that your grandmother’s assets must be spent down before Medicaid will pay her long term care costs.  Fortunately, the nursing home will not take your grandmother’s engagement ring, as jewelry is an exempt resource.

An exempt resource is something that your grandmother owns that doesn’t have to be spent down before she qualifies for Medicaid.  Exempt resources include jewelry, a small amount of cash, her home, a car, a pre-paid funeral or burial trust, small amount of life insurance, clothing, furniture, and other personal possessions.

If your grandmother is married and her spouse lives in their home, higher levels of cash and income can be protected, than if she is single.

One Medicaid planning strategy is to convert non-exempt resources into exempt resources.  For example, cash may be spent down by replacing the roof on your grandmother’s home or paying off the mortgage.

A word of caution, valuable personal items often go missing in nursing homes; it would be wise to put your grandmother’s engagement ring in a safe place with loved ones, instead of her wearing it in the nursing home.

If you want to protect your grandmother’s belongings and assets, such as an engagement ring from the nursing home, consult with a qualified elder law attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Realizing that long term care is needed is not something that’s only stressful for a senior; it can also have a big impact on the entire family.  Family members may have fears for their loved one’s well-being.  It’s possible to come to terms with the need for long term care.  Take a look at the following information, to learn more.  If you have any questions, or if you’d like to discuss long term care options, contact an estate planning attorney.

With extra assistance and care, your loved one will be able to live a better life.  You can also have less anxiety knowing that your loved one is always safe.

In order to better prepare for these changes, take the following tips into consideration:

• Choosing a reputable facility will allow you to feel more comfortable.  Make sure to do careful research so that your loved one is in a great environment and in good care.
• Just because your loved one needs long term care doesn’t mean that you can’t still be part of his or her life.  Make plans to regularly visit with your loved one, so that you still have a great relationship.
• Understand that your loved one will be able to get more help with the use of long term care.  It may be impossible for your friends and family members to offer all of the extra care that is needed.
• Be supportive and excited for your loved one.  Your fears can make your loved one’s anxieties much worse.  You need to remain as calm and collected as possible so that your loved one is able to make the changes that are needed.

If you have any questions, or if you need help choosing a long term care facility, consult with a qualified estate planning attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Although most people would prefer to stay where they are and have home care when they get to the point that they need extra assistance with daily activities, before deciding on this route it is a good idea to assess your needs now, and what they may be at a later time. Your doctor can help you determine if home care is a good option, or if you are likely to need more care than what would be available to you at home.

Doctors cannot predict the future, but they can give you an assessment based on any current health problems that you might have at the present time. When it comes to the possibility of long-term care, you will basically have a few different choices.

• Stay at Home – The most popular option with many people is to remain in their own home; this is possible if they are not suffering from dementia and are still living fairly independently. Even if someone does have some problems with daily activities, when you combine the technology of today, such as monitoring devices, along with home care and family, it is possible for many people to remain at home.

• Moving in With Relatives – At times it is more appropriate to live with relatives that can help with home care, than to remain at home. This arrangement has many advantages, it will keep you close to your loved ones, and it is less expensive than a nursing home. The problem with this living arrangement is that it can be very trying for those relatives that are providing care.

• Assisted Living Communities – This option is becoming very popular with the elderly; assisted living allows you to live independently, while still having assistance available if it is needed. There are number of assisted living communities that provide various levels of service. Some of the services that are offered range from maid and meal service, to help with daily tasks such as bathing and eating. To live in this type of community it would be necessary to retain some degree of mobility and independence, as the assistance offered is not as extensive as what is offered in a nursing facility.

• Nursing Home – This is often the least popular choice because of the distrust that many have for nursing homes, plus it represents a total lack of independence. Frequently a nursing home is necessary when someone needs 24 hour care medical care and supervision, as well as extensive assistance with daily activities.

To ensure that you have a long term care plan that will work for you, it is impotent to consider what your future needs may be, and which living arrangement would best meet those needs. Of course no one can predict the future, but the better prepared you are, the less chaos you and your family will experience if there is ever a need for long term care.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Are you afraid that your elderly loved one may need to make the move to a nursing home or long term care facility?  It’s important to understand the warning signs that your loved one may need assistance with daily living.

Take a look at some of the information below to better judge when your loved one may need help.  If you need help choosing a nursing home or long term care facility, meet with an elder law attorney to discuss your options.

Make sure to check in with your elderly loved ones often.  If you notice any of the following warning signs, your loved one may need assistance!

• Does your loved one have trouble completing tasks around the home?  As your loved one continues to age, it may be more difficult to move around the house.  It can also become impossible to handle simple tasks such as cleaning or cooking.  Your loved one may need assistance with some of his or her daily activities.
• Is your loved one unable to handle personal hygiene tasks anymore?  Your loved one may have trouble taking of the simplest things such as bathing, getting dressed and brushing his or her hair.  If you notice that your loved one is slowly beginning to neglect his or her hygiene, help may be needed.
• Does your loved one forget to pay bills or manage finances?  This can create a serious financial problem for your loved one.  You may need to assist with some of your loved one’s financial responsibilities.
• Has your loved one fallen or become injured more easily?  It’s a good idea to make sure that your loved one does not have safety issues throughout his or her home.  Take the time to “fall-proof” your loved one’s home in order to minimize injuries and accidents.

You can take small steps to ensure that your loved one is always cared for.  Speak with your loved one about your concerns.  If you need help deciding if your loved one needs to live in a nursing home or long term care facility, consult with a qualified elder law attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.