The facts ...
• Assets in a revocable living trust are not protected and must be used to pay for the costs of long-term care.
• If you are married, your home is exempt and cannot be taken when applying for Medicaid. If you are single or widowed, your home is exempt up to $750,000. If you transfer your home to your children, not only will it result in immediate ineligibility for Medicaid, but it could also:
• Trigger a gift tax,
• Result in the loss of your STAR tax exemption, and,
• Result in your child's spouse (the in-laws) inheriting your home.
• Giving your assets away means losing control. It's not safe even if you trust who you give it to. If that person divorces, goes bankrupt or is sued, all of the money you transferred is at risk. There are asset protection trusts that permit you to keep 100% control of your assets without the risk of losing them if long-term care is needed.
• You do not have to wait 60 months to qualify for Medicaid. Eligibility is calculated on a case-by-case basis. It is possible to have over $250,000 in cash and qualify immediately. Get professional advice and learn the facts.
• It is never too late to protect your assets even if you are already in a nursing home. In fact, you can qualify for Medicaid sooner if you are already in a nursing home, than if you aren't.
• A nursing home or hospital that offers to file a Medicaid application for you has no obligation (and often can't) advise you on how to protect your assets. Only a qualified Medicaid planning attorney will be looking out for your interests.
• Applying for Medicaid prior to qualification could result in being disqualified for a longer period of time than you otherwise would have been (it's not limited to 36 months).
• Make sure the attorney you hire is experienced in Medicaid planning. Would you go to your regular doctor for a heart problem?
• Consider long-term care insurance. An annual premium for a couple is usually less expensive than one month of nursing home care and with proper planning, it may also enable you to stay home if you become ill.
Friday, April 24, 2009
Wednesday, April 22, 2009
WHO NEEDS ESTATE PLANNING?
The facts ...
Estate planning isn't about how much money you have, it's about protecting what you have for you, during your life and for those you love, after you're gone. It ensures what you have gets to the people you love, the way you want, when you want.
If you were to die today, are you comfortable everything will be taken care of the way you wanted? Estate planning is legally ensuring things will be handled the way you want by providing sufficient instructions.
Estate Planning really is for everyone. It doesn't matter if you have $40,000 or $400,000. You still have to plan for the future. Whether it's to name a guardian for your minor children or ensure your children don't blow through your assets if you unexpectedly die or become disabled (Terri Schiavo case).
Estate planning can only be done by attorneys, and it can be as simple as a Will, Health Care Proxy, Living Will and Power of Attorney. It can also include a revocable, probate-avoidance trust, asset protection trusts, multi-generational tax- saving trusts, tax-saving charitable trusts, private family foundations, and many other fact-specific strategies.
Keeping your Estate Plan Current ...
Once completed, your estate plan should be reviewed and kept current with life events such as birth, death, marriage or divorce of anyone included in your plan. In addition, you should review your plan if there is a significant increase or decrease in your finances or if the laws related to your estate plan change.
Estate planning isn't about how much money you have, it's about protecting what you have for you, during your life and for those you love, after you're gone. It ensures what you have gets to the people you love, the way you want, when you want.
If you were to die today, are you comfortable everything will be taken care of the way you wanted? Estate planning is legally ensuring things will be handled the way you want by providing sufficient instructions.
Estate Planning really is for everyone. It doesn't matter if you have $40,000 or $400,000. You still have to plan for the future. Whether it's to name a guardian for your minor children or ensure your children don't blow through your assets if you unexpectedly die or become disabled (Terri Schiavo case).
Estate planning can only be done by attorneys, and it can be as simple as a Will, Health Care Proxy, Living Will and Power of Attorney. It can also include a revocable, probate-avoidance trust, asset protection trusts, multi-generational tax- saving trusts, tax-saving charitable trusts, private family foundations, and many other fact-specific strategies.
Keeping your Estate Plan Current ...
Once completed, your estate plan should be reviewed and kept current with life events such as birth, death, marriage or divorce of anyone included in your plan. In addition, you should review your plan if there is a significant increase or decrease in your finances or if the laws related to your estate plan change.
Monday, April 20, 2009
MEDICARE AND MEDICAID ...
The facts ...
Eligibility
Medicare is a health-care benefit provided by the federal government to individuals over age 65,or under age 65 and disabled. Medicare covers doctor visits, tests and care provided in a hospital and limited benefits in a nursing home (see below).
Medicaid is health insurance for the poor. To qualify, you must not exceed certain income and asset limits. You must meet certain income and asset requirements. If your income or assets exceed the qualifying limits, you will not be eligible. There is no age restriction to qualify.
Qualification
To qualify for Medicare, you must be over 65, and eligible for Social Security benefits. You may also qualify if you are under age 65 and disabled for two years. An application at the Social Security office will get your benefits started.
To qualify for Medicaid, you must submit a multiple-page application and provide detail proof of all your financial transactions (banking, CD's, stocks, bonds, income, expenses, annuities, etc.) for the previous 60 months.
Nursing Home Costs
Medicare will only pay for 20 days in a nursing home (in limited circumstances, it can pay partial cost of 80 additional days) while Medicaid will pay the entire cost of a nursing home.
The laws around Medicaid qualification are extensive, and there are many exceptions. Often, hospitals and nursing homes will offer to do this for you at no cost. Be careful, they do not represent you, but rather, the institution for which they work. Even with the best intentions, they often do not have the legal knowledge necessary to determine whether or not your qualification is accurate. this is where a legal professional can really be of value and often times, be able to get you benefits much sooner.
Eligibility
Medicare is a health-care benefit provided by the federal government to individuals over age 65,or under age 65 and disabled. Medicare covers doctor visits, tests and care provided in a hospital and limited benefits in a nursing home (see below).
Medicaid is health insurance for the poor. To qualify, you must not exceed certain income and asset limits. You must meet certain income and asset requirements. If your income or assets exceed the qualifying limits, you will not be eligible. There is no age restriction to qualify.
Qualification
To qualify for Medicare, you must be over 65, and eligible for Social Security benefits. You may also qualify if you are under age 65 and disabled for two years. An application at the Social Security office will get your benefits started.
To qualify for Medicaid, you must submit a multiple-page application and provide detail proof of all your financial transactions (banking, CD's, stocks, bonds, income, expenses, annuities, etc.) for the previous 60 months.
Nursing Home Costs
Medicare will only pay for 20 days in a nursing home (in limited circumstances, it can pay partial cost of 80 additional days) while Medicaid will pay the entire cost of a nursing home.
The laws around Medicaid qualification are extensive, and there are many exceptions. Often, hospitals and nursing homes will offer to do this for you at no cost. Be careful, they do not represent you, but rather, the institution for which they work. Even with the best intentions, they often do not have the legal knowledge necessary to determine whether or not your qualification is accurate. this is where a legal professional can really be of value and often times, be able to get you benefits much sooner.
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