Don't Make These 7 Medicaid, Long Term Care Planning Mistakes

Don’t Make these 7 Medicaid/Long-Term Care Planning Mistakes

 Proper planning is required to obtain Medicaid assistance. When people encounter chronic illnesses and face depleting financial resources, consulting with a certified elder law attorney will help you avoid long term care planning and asset preservation pitfalls:

1. Transferring the house: People who transfer their home to their children will find themselves ineligible for Medicaid. The Medicaid agency can look at your financial records and gifts for the prior 5 years. The house does not count as a resource if it is valued at under $536,000.00.

2. Making gifts: Gifting will delay you receiving Medicaid. If you make gifts after you become ill you are going to have a very difficult time convincing the Medicaid agency that you did not do it just to become eligible for Medicaid.

3. Buying an annuity: An annuity is not the right answer for everyone especially single people or widows/widowers.. Since 2008 federal law requires the annuity to name the state Medicaid agency as beneficiary (unless you have a spouse or disabled child). This means any remaining value of the annuity will be paid to the Medicaid agency, not to your family.

4. Using a family member's social security number: If you have a joint account with a family member and only use that family member's social security number, that will not avoid the account being a counted resource by Medicaid. As a joint owner either half or all of the account will be treated as yours (if the other joint owner did not contribute anything to the account you may be treated as owning 100%).

5. Filing an application when you have excess resources: Your application will be denied if you have more than $2,000.00 for single people or more than $115,920.00 if married in countable resources. Learn how special needs trusts, pooled trusts, rental property, spousal refusal and other planning options can help you qualify and preserve assets.

6. Filing an application when you have too much income: Your application will be denied if your gross monthly income in Florida exceeds $2,163.00 (includes social security retirement, pensions, IRA distributions). You need an attorney to draft a qualified income trust before you apply otherwise it will delay approval and you will have to pay privately for your care.

7. Filing an application without legal representation: Don't file a Medicaid application without first having your situation reviewed by a board certified elder law attorney. I can spot potential problems and tell you how to avoid them which can save you time and money and give you peace of mind.

We want to be your trusted advisor through Life. 
Please visit our firm's website www.fl-elderlaw.com.  Join our e-mail newsletter list.
View our calendar for events and free seminars.

How Much Does a Simple Estate Plan Cost?

                                   "How Much Do You Charge for a Simple Estate Plan?"

Ever since the United States economy tanked in 2008, along with the downturn in the Florida real estate market, I've observed that a lot of people became frozen by the fear of not having enough money and delayed seeking elder law advice to resolve important legal issues.

Many families found themselves in a legal crisis. Why? Because they didn't want to invest in their future and seek qualified legal advice at the earliest possible time.  What I refer to as the 'fear of lack' instead of abundance (the glass is half full), has caused people to take shortcuts to resolve their legal issues - these shortcuts often result in more problems and expense to fix. Unfortunately, the delays I witnessed resulted in people incurring more legal fees to fix the problem, losing the privacy in their lives (due to guardianship) and having fewer planning options. 

 A common situation is people creating their own legal documents on the internet through Legal Zoom or other service.  In many situations those documents were not properly signed (so they are not valid) or, didn't fully address their legal needs.  Sadly, this is a perfect example of being 'penny wise and pound foolish.'

Since 2008 my office receives calls from people asking "how much does it cost for a simple estate plan?" or, "how much will it cost to protect my assets and qualify for Medicaid?" Unless the caller receives a range of legal fees, the caller won't schedule a consultation.   My staff and I cannot diagnose your issues in a few minutes on the telephone in order to tell you the cost of our legal services--as qualified and experienced as I am.  Just like a doctor cannot diagnose and treat a patient's medical issue over the telephone.  We do not want to scare anyone away by quoting a range of fees that may not apply to your particular situation.  We want to motivate you to be an informed consumer. At our firm we: 

• tailor our advice and recommendations to your circumstances and needs while treating you  with compassion
• educate you about the law, your rights and planning options
• empower you to make an informed decision to achieve your goals that helps create peace of mind.

      To do this effectively, I need to meet with you to: 

1. discuss what is happening or changing in your and your spouse or partner's lives;
2. identify your concerns and goals;
3. review your finances (type of assets and income, value and ownership); and
4. determine which legal planning options will best help you achieve your goals based on your circumstances.

There is no 'one size fits all' solution to creating an estate or asset protection plan.  Each person is unique and deserves to receive a comprehensive analysis with recommendations tailored to them.  That is why when you visit my firm's website (www.fl-elderlaw.com ) you can download a gift certificate for a 20% discount for the initial consultation.  The consultation will be an investment in your future.  At the end of the consultation you will not only leave informed about your planning options you will also receive a written proposal for legal services. 

As a well known businessman suggested: Be an educated consumer. Don't make decisions that impact your future and your family based on fear.

We are pleased to work with our clients at our office, via telephone where appropriate, and we make house-calls. Our goal is to counsel people of all ages to co-create a plan that achieves your goals.