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Q&A on Common Estate Planning and Elder Law Issues The rules relating to planning to maximize your estate and to take the
fullest advantage of all of the government benefits available are complex and
the violation of a rule can have devastating effects.
An experienced elder law attorney is an essential part of the planning
process. It is never too early to
start thinking about these issues. A disabling or debilitating injury or illness can strike at any age. Planning for medical expenses and long term care needs does not need to impair your current lifestyle or restrict your estate plan to be effective.
Q: When should I start planning for the health care expenses and need for
care issues that arise with advancing age? These documents should be reviewed every five years
or more often if there is an event of any change in your family situation (a new
child, a divorce, a death, etc.), a significant change in your financial status
or a change in medical condition. Long term planning for the issues that often come
with advancing age should also be done as part of your estate planning, and in
the event that estate planning is not done, you should seek professional advice
as soon as possible after the diagnosis of a potentially debilitating illness.
Ideally, long term planning is done while you are in
good health, as long term care insurance is rarely available after the diagnosis
of a disabling illness. You can make a plan that can be changed as your
situation changes, but waiting may mean that certain options that would be very
valuable to you may be foreclosed. Q: If I have a will, do I still need to plan for health and long term care
expenses that may arise with advancing age? A: Yes. Wills generally address what will happen to your assets and debts after death. These documents commonly do not address payment and management of medical and long term care expenses during your lifetime. Q: Why should I plan for health and long term expenses – won’t the
government take care of me? A: With respect to long term care services, Medicare pays for skilled nursing care in diminishing amounts for up to 100 days, for persons who qualify for such services. Medicare does not pay for medications or custodial care, comfort care, or non-skilled services. Medicaid however, does pay for those services. Most people are under the misconception that Medicaid is health insurance only available to the indigent or that to qualify for such coverage, one must deplete all of their resources. One may obtain financial planning services that enable the preservation of one’s assets to the extent permitted by law and qualify for Medicaid so long as certain conditions are met. In this way, Medicaid covers many long term care and related services that Medicare does not. Eligibility for many government benefits is dependent
on your financial circumstances. Planning
can protect your estate from being depleted to pay for health and long term care
expenses. With proper planning, an
individual’s estate can be protected from being used to pay medical and long
term care expenses. Q: Will being on Medicare and Medicaid affect the quality of care that I
will receive? A: No. Federal law is clear that if a facility accepts Medicare or Medicaid patients, those patients must receive the same level of medical, nursing or long term care as a patient who privately pays or who has private insurance. Q:
What government benefits are available to assist me with meeting the health and
long-term care expenses that often come with advancing age? A: In
addition to Medicare and Medicaid, Social Security and Veterans Administration
and other government benefits may be available. Medicare is a benefit that almost everyone is
entitled to. This benefit is
generally available based on age or disability, and not on income or assets.
This benefit generally covers costs of hospitalization and certain
medical care. Medicaid is an indigence based program that if you
qualify, will pay for long term care and some medical treatments and
medications. Q: Are these rules or limits on my transfer of assets in terms of my
qualification for government benefits? A: Yes.
The transfer of property can have a devastating effect on your ability to
qualify for Medicaid. You must seek
the advice of an experienced elder law attorney before transferring property
when health and long term care issues associated with advancing age are
imminent. Q: Should I get divorced and transfer all of my assets to my former spouse
in order to qualify for Medicaid benefits? A: No. The laws were changed in 1993 so that the spouse who needs long term care does not need to be impoverished in order to qualify for Medicaid.
Beatitudes for
Friends of the Aged Blessed
are they who understand my faltering step and palsied hand. Blessed are they who know that my ears today must strain to catch the things they say. Blessed
are they who seem to know that my eyes are dim and my wits are slow. Blessed
are they who looked away when coffee spilled at the table today. Blessed
are they with a cheery smile who stop and chat for a little while Blessed
are they who never say, you’ve told that story twice today. Blessed
are they who know the ways to bring back memories of yesterdays. Blessed
are they who make it known that I’m loved, respected and not alone. Blessed
are they who know I’m at a loss to find the strength to carry the Cross. Blessed are they who ease the days on my journey Home in loving ways. The SSHEL Report: Is published as a public service by the Rice Law Firm, L.L.C. which is dedicated to serving the needs of older and disabled individuals and their families. |
