Sarasota Elder Law attorneys are very concerned about the high and rising cost of long-term care. Medicare does not pay for these types of expenses and it is likely that you will need long-term care at some point in time if you obtain senior citizen status. As a result, bracing yourself for the possibility of incurring long-term care expenses is necessary if you want to be prepared for the future.

There is a federal program that will pay for long-term care if you can qualify. Medicaid, a program which is intended for people who have financial need, will cover long-term care expenses. However, if your assets exceed $2000 you do not qualify because of the underlying premise behind the program.

Before you think that there is no way you could become eligible, you have to understand that a lot of your assets don’t count toward the Medicaid limit. And in addition to this, if you are married and in need of long-term care while your spouse does not need living assistance he or she can keep half of the community assets up to a particular limit.

In 2011, the amount that the healthy or community spouse could keep without impacting the Medicaid eligibility of his or her ailing spouse was $109,560. Many people will be glad to hear that this figure has been raised for 2012 up to $113,640.

Doing what is necessary to become eligible for Medicaid can be the logical course of action for some people. If you would like to talk it over with a professional, simply take a moment to arrange for a consultation with a licensed Sarasota Elder Law attorney.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

Sarasota elder law attorneys are always going to be quick to inform their clients about the often overlooked subject of long-term care.

When it comes to long-term care the first thing that you would do well to recognize is that Medicare does not pay for it. The second thing to be mindful of is that the majority of senior citizens will someday need living assistance. And thirdly, you have to get a handle on just how expensive long-term care has become.

In 2010 the national average for a yearlong stay in a nursing home was $83,500, and the same period of time in an assisted living community cost nearly $40,000 on average. These numbers are high right now, but industry analysts tell us that we can expect long-term care costs to continue to trend upward in the coming years.

Though Medicare does not pay for long-term care Medicaid will if you can qualify but there is an upper resource limit of $2000. However, there are significant assets that don’t count toward this figure such as your home and your vehicle. The healthy spouse may also keep his or her half of community property up to a limit

A lot of people will “spend down” in an effort to reduce their assets to qualify for Medicaid. If you do this, it is important to be aware of the five-year “look-back” period. You are penalized for any gifts that you give in an effort to trim down your resources within five years of applying for Medicaid and this penalty delays your eligibility.

Because of the look-back period you need to plan ahead in advance in a careful manner if you want to aim toward Medicaid eligibility. The best way to do this is with the assistance of a licensed and experienced Sarasota elder law attorney.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

Have you ever considered paying a family member to care for you when you need assistance with your daily activities?

Caring for a family member is a responsibility many people bear in this day and age, but it can also be a source of income.  A “caregiver agreement” is a formal contract under which relatives are hired to care for elderly family member, and if properly drafted and used, it can be a win-win for both children and their elderly parents.

If a parent may need to rely on Medicaid to cover future nursing-home costs, a family must pay the caregiver in a way that is permitted under Medicaid law. Since Medicaid is a need-based program, applicants must show that they have limited assets and income, and they are barred, for the most part, from gifting property to meet the standard.  In fact, Medicaid law allows the program to ‘look back’ for sixty months to review any transfers, and improper transfers may result in a period of ineligibility for benefits.

If a caregiver’s agreement is properly set up, Medicaid may allow these payments and not consider them gifts or improper transfers, but the agreement should:

• Be in place before the services are rendered;
• Document a caregiver’s responsibilities and hours;
• Set a rate of pay that is in line with local costs; and
• Be properly signed and witnessed.

It is important that you consult with an elder law attorney or Medicaid planning attorney to make sure any caregiver arrangement is properly structured and carried out, otherwise, Medicaid ineligibility may be a consequence.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

For most people paying the cost of long term care in a nursing facility is beyond their means. In Florida, the average monthly cost for nursing home care is nearly $7,000. For those that barely have enough to get them by now, there is simply no way to cover this expense.

This is the reason that so many people must turn to Medicaid to help them pay the cost of long-term care in a nursing home setting. The problem is that qualifying for Medicaid can be tricky, especially if you have assets that could make you ineligible for benefits.

Medicaid planning often involves seeking out an attorney that can advise you of all the various rules imposed by Medicaid and how those rules will affect your particular situation. When it comes to Medicaid planning, your attorney’s job is to protect your rights, as well as help you to keep as many of your assets as possible and still be eligible for Medicaid.

The majority of people that need help with Medicaid planning are not those that have an immense amount of money that they want to hold on to, while still getting Medicaid. Instead, those that seek help are usually family members that are worried that the cost of a nursing home will risk the financial well being of the healthy spouse that will be living at home.

Through careful planning the spouse that will remain at home will not be forced into poverty in order to pay for a nursing home for their partner, and the person that must enter the nursing home can keep enough of their assets to maintain a better quality of life while in the facility.

Although an attorney can help most people qualify for Medicaid and retain many of their assets in one form or another, it is important to understand that Medicaid planning is really for those that have no other alternatives. The best way to tackle the cost of long-term care is by planning for it before it becomes an issue. Long term care planning should be a part of everyone’s retirement plan.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

At one time people believed that once you entered a nursing home, it was for good, but this isn’t necessarily true today. Although there are people with conditions that require 24 hour monitoring that must remain in a nursing facility, more and more people that can transition out of nursing homes are able to do so.

If you have a loved one that has been living in a nursing facility but would like to transition into an independent living situation, there are some things that you will have to take into consideration.

• Does the person have a desire to live independently? The desire to living independently is important due to the fact that it will take a lot of ambition to be able to overcome the obstacles necessary for success.

• Will your loved one have the financial resources to be able to live independently? Though there are a number of government programs that can make independent living easier, such as Supplemental Security Income, and food assistance, there could still be some financial problems.

• Will your loved one need in home care, and if they will, to what extent. You will need to find out what type of in home care will be available to them.

• Is it going to be possible to find suitable housing? Your loved one’s housing requirements will vary, and will depend on how mobile they are and what their health care requirements are.

• How much help will be available from community services. Some communities offer special services to those with health care and mobility problems, such as delivered meals, and transportation. Find out what is available in your community.

• Will your loved have the skills necessary to live on their own or will they require a nursing aid? It may not be practical for your loved one to live on their own if they require constant care, but it may be a possibility if they only need infrequent care. Some home care specialist will visit on a regular basis.

If your loved one wishes to try living independently you will first have to talk with their doctor about the possibility, and then evaluate the practicality of the option. For those that are capable of making this transition, it is often the best choice for their emotional health.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

Many nursing homes and hospitals have questionable practices, and one of these is their tendency to pick and choose when it comes to which patients they will admit to their facilities, and keep there as long as needed. Due to federal law, once someone has been admitted to a nursing facility, that facility must provide the same level of care as they do all of their patients, regardless of if they are private pay or a Medicaid patient.

The problem is that if a facility only has one bed and two patients that need that bed, they will nearly always choose the private pay patient over the Medicaid patient. The reason for this is that they will get more money from a private pay patient. It is also not too uncommon to see a nursing facility evicting a Medicaid patient, if that patient becomes too costly to care for. With hospitals it can be even worse; some have actually taken uninsured patients and dropped them off in the middle of cities, near homeless shelters, even when that person was in no condition to be discharged from the hospital.

Basically what this means is that there are some advantages to keeping assets in your name when you apply for admission to a long term care facility. This is also one reason why it is so important to consider long term care insurance years before you will ever need it. In fact, long-term care insurance should be a part of everyone’s overall estate plan.

There are several reasons why long-term care insurance is a much better option than Medicaid; the first being that you do not have to bother with a Medicaid spend down and will be able to keep your assets in place. Another advantage to this insurance is that you will have more options when it comes to your long-term care, including home care. This will actually help to keep you in your own home longer. Then of course there is the fact that you will probably have an easier time getting admitted to a nursing facility if you have long term care insurance, and there will be less of a chance that you will be evicted if your condition declines and you need more expensive care.

When it comes to planning for long-term care, you will want to contact an attorney experienced in this area, to find out what your best options are.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

One of the biggest misconceptions of our era is that many retirees are wealthy. This has been one of the reasons given by politicians that want to reduce entitlements, such as Social Security and Medicare. It is mistakenly thought that most of the nations assets are owned by the elderly, and while this may be true to an extent, what they are not telling you is that those that own these assets are the wealthy few. Most retirees barely get enough money to live on, and that is if you count Social Security.

The large majority of people will enter retirement with little to no retirement savings or investments. This is partly due to the fact that many employers simply don’t offer these benefits anymore, and even those people that do have 401k plan, only have investments with an average of $45,000 value. In addition to this, a large number of these people lost a big chunk of that money during the recent recession.

To believe that most retirees are wealthy and do not need Social Security is simply an illusion that is being put forth by politicians for their own reasons.

Although during the recent Health Care Reform debate many older Americans were apposed to the idea, this is likely due to the fact that they fear losing the little that they have with the reform. There is no doubt that the elderly need to keep Medicare benefits, they should also be increased. Along with increased benefits for the elderly, these same benefits should be given to the younger generations in order to avoid some of the health problems that will come with old age if their health is neglected now.

To reduce Social Security and Medicare for retirees would be disastrous to the elderly of this country. The many strides that the United States has made over the past decades could be undone completely if the elderly are left behind.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

A lot of people own homes that may not be exactly what they need once the kids are gone and they are ready to retire. While some choose to stay in the family home during retire, others may want to sell their home to rent or buy a smaller house. Before deciding what you will do with your family home there are a few things that you’ll want to consider.

Deciding whether to sell your house in order to rent an apartment or smaller home, will really depend on what your needs are and what the current market situation is. If you will not get a lot out of your house, it may make more sense to keep it, at least until the market rebounds. On the other hand, you may makeup that money by paying less in rent than what it is costing you for your mortgage. If your home is paid for, it would probably make more sense to keep it until you can get the amount that you want by selling it.

One advantage that you may get by selling your home and downsizing is that it can provide you with extra money to live. A lot of retirees do not have as much money to get them through retirement, as they would like. The amount that many people get from Social Security is not sufficient income. If you need the extra money then it may make sense to sell your family home.

Another reason to sell your home after retirement is that you will not have to deal with the problem of keeping up the home, and all of the expenses that come with owning your own home. In addition to this, if your health begins to decline, you will be a lot more difficult for you to keep up the house. Climbing ladders and taking care of landscaping can be strenuous work, and may not be something that you’ll be capable of doing at some point.

When you are renting you are not going to be responsible for much of the upkeep on the house, and if you are renting a condo or an apartment, you will not need to worry about yard work.

Basically what you do with your family home will depend on how you want to spend your retirement and your own personal situation.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

If you are one of those people that believe that the only thing that you have to do to plan for long term care and qualifying for Medicaid is give away your money, you are probably going to be very disappointed. There is a look back period of 5 years to qualify for Medicaid, and whatever you have given to someone during that period will be counted, no matter how much it was.

For example, if you were to give your child a large sum of money today, and a month or a year from now find that you need to apply for Medicaid to help pay for long term care, you would likely not qualify. Medicaid will not try to recover that money, but what they will do is find you ineligible for Medicaid until the 5-year look back period is over. The only alternative in this situation is if all of the gifts that were transferred to someone else are returned, and all of those assets are used to pay for long-term care. When these assets are gone, you may then be eligible for Medicaid.

One of the reasons that many people believe that they can give away a certain amount of money and still qualify for Medicaid is that they are confusing the gift tax, with Medicaid eligibility. The fact is that you can give away up to $13,000 a year to several people and not have to pay a gift tax, but this has nothing to do with Medicaid, and this money will be counted as a transfer so that you are not eligible.

If you plan to give away your money or assets, you will need to be aware of the fact that you will not qualify for Medicaid for 5 years after you transfer these assets out of your name. For this reason, if this is something that you want to do, it is better to do it far in advance of the time that you think you might need to qualify for Medicaid.

To find out what your options are, it is best to consult with an attorney experienced in dealing with Medicaid law. Though family and friends may be giving you advice with the best of intentions, only an attorney with experience can guide you through the maze of rules and help you qualify for Medicaid.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

Very often when you have an estate plan that will help you avoid probate, it will end up causing problems later when you need to qualify for Medicaid in order to cover the cost of long term care. In order to take care of one problem you will end up creating another, then you must decide which is more important, avoiding probate or qualifying for Medicaid.

Due to the fact that many families want to avoid the trouble and cost of probate, they tend to take the advice of friends and family and create estate plans on their own that could be potentially costly later. The cost of nursing home care will far outweigh any savings that your family gets by avoiding probate.

The requirements for Medicaid eligibility are different than they once were; today there are rules in place that are meant to address many of the techniques used in the past to qualify for Medicaid. In addition to this, there is now a 5-year look back period; during that time, anything you give away will be counted as assets. You will need to wait for 5 years from the time the assets were taken out of your name in order to qualify for Medicaid.

Giving the family home to a family member by placing them on the deed is one of the most common mistakes people make when trying to avoid probate. Not only will this bring on problems when it comes to the federal gift tax, but it will also keep you from qualifying for Medicaid coverage.

Additional mistakes that people make include putting a family member’s name on financial accounts, giving money or assets away, or donating them to charities. You also cannot sell assets for less than fair market value or place your assets in a Living Trust.

Some people mistakenly believe that if their assets are placed in a Living Trust they will be able to qualify for Medicaid, but this isn’t the case. Any assets you have in trust are still considered yours and will result in penalties when you apply for Medicaid. Fortunately it is simple to take the assets out of the trust prior to applying for Medicaid, so this mistake can be corrected fairly easily.

If you want an estate plan that will help your family avoid probate, while at the same time not cause problems when it concerns Medicaid, you will want to consult with an attorney to find out what your options are. It is vital that you do this prior to taking any action on your own.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.