Tag: Medicaid

How to Transfer Your Home Without Jeopardizing Your Medicaid Eligibility

There are many Long-Term Care Medicaid Rules in place which help pay for senior’s care costs. However, it is important for those receiving Medicaid to understand that there is a five year “look back” period where the state can actually penalize an individual from Medicaid eligibility, if there was an uncompensated transfer during this time. This can prevent your application from getting approved.

The good news is, there are ways to transfer your property to someone else, without risking your Medicaid eligibility. These exceptions on home transfers can help you and your family during this time. Here are the primary ways to transfer your property while maintaining your Medicaid eligibility.

Transfer the Home to the Right Family Member

There are a few types of family members you can transfer your property to:

  • You can transfer it to your spouse who already lives in the home.
  • You can transfer the property to a child under the age of 21 or a child who has been determined disabled by the Social Security Administration.
  • You can transfer the property to an adult child who has lived in the home for at least two years before you were institutionalized and provided care that prevented institutionalization. This requires proof by your doctor or social worker that the care was essential.
  • You can transfer the property to a sibling with equity interest in the home and who has lived in the property for one year before your institutionalization.

These transfers will not impact your eligibility for Medicaid. Be prepared to provide proof of residence in these situations.

Transfer Through Deeds

The primary deed we recommend for transfer after death is the Lady Bird Deed. This is an enhanced life estate deed that also avoids Medicaid Estate Recovery. In these situations, the person maintains control of their property during their lifetime, including the power to sell and retain proceeds assuming the Medicaid applicant signs a document stating they intend to return home.

There are also a number of tax issues that you need to be considered first before going with this type of transfer. Depending on your individual situation, the deeds may or may not be the best choice.

If you have questions about how you can transfer your property to a loved one, without risking your Medicaid eligibility, give the attorneys at Hegwood Law Firm a call at (281) 218-0880 to discover your best Medicaid options.

Houston Estate Planning for the Chronically Ill

More than half of Americans now have at least one chronic health condition, mental disorder or substance abuse issue. That is a staggering statistic, even for me as a Houston estate planning lawyer that works with sick and disabled clients every day.

There are two common definitions for chronically ill. The first definition is a disease that a person will live with for many years. This types of illness include diabetes, cardiovascular disease, lupus, MS, hepatitis C, and asthma. The legal definition of chronic illness states “the person is unable to perform at least two activities of daily living such as eating, toileting, transferring, bathing and dressing, or requires considerable supervision to protect from crisis relating to health and safety due to severe impairment concerning mind, or having a level of disability similar to that determined by the Social Security Administration for disability benefits.”

Everyone needs estate planning, but for the chronically ill there is a high sense of urgency. For healthy people, a will or trust plans for the “what if?” When you have a chronic illness, you are planning for the “here and now.”  We can help you set up a plan for your care and well-being by naming someone who can make medical decisions if you are not able to do so yourself. Without a plan that includes a HIPPA authorization and healthcare directives, the person that you choose may not legally be able to speak for you.

Additionally, an estate planning lawyer in Houston can help you utilize tools such as trusts to protect assets so that you can be eligible for Medicaid without totally scrambling your nest egg.  A living trust can also give you the peace of mind knowing that your estate will easily be passed to your heirs without going through the probate process when you do eventually pass away.

The bottom line is this: do not assume that because you are suffering from a chronic illness that it is too late to take steps to better your financial situation or safeguard your family.  Even if you are (or have a loved one) currently in a nursing home, there may still be options!  The first step is to simply contact our office. We will schedule a planning session with you and walk through all of the avenues of protection that could work best for your family.

Houston Elder Lawyer Answers, “When should I start planning for long-term care?”

One of the most frequently asked questions our Houston elder lawyers receive is, “When should we start planning for long-term care?” The short answer is, “Long before you need it!”

When it comes to your home, your health and your finances, you want to be in the driver’s seat. That is why it is so important to plan now for any future care you may need. Even if you have a nice nest egg set aside for retirement, it could quickly become cracked and scrambled if you require a stay in a nursing home or need assisted living. A nursing home stay could easily cost you $6,000 to $12,000 per month. How long would your money last at that rate?

Many people realize that long-term care is a rising concern for elderly individuals. While it is true that most people living in long term care facilities are older, planning for long-term care is not something you should put off. At any point, any one of us could require long-term care. Just one accident could place you in long-term care facility for the reminder of your life.

Unfortunately, we have seen families forced into debt and even bankruptcy to meet the needs of their loved ones. This is why we discuss the need for long-term care insurance with all of our clients. Additionally, we make sure that you have all of the proper legal documents such as powers of attorney and healthcare directives in place in the event something happens to you and someone has to step in and make financial and medical decisions on your behalf.

A solid Medicaid Plan and/or Irrevocable trust may also be a wise idea in order to protect your family’s finances from the grasp of long term-care facilities, without jeopardizing your loved one’s access to benefits such as Medicaid down the road.

When setting up your plan, it is important to meet with an attorney that not just handles estates, but also elder law issues, in order to create a strategy for long-term care that will protect your family and provide total peace of mind.

If you have any questions about a long-term care plan or would like to discuss the documents that you need, contact our Houston elder attorneys at (281) 218-0880.

Come On, Do I Really Need a Will?

The answer to that question has always been an unequivocal “yes”—especially when there’s a spouse, children or stepchildren. However, there are some financial advisers that now say many Americans might not need a will. Forbes’ article, “Do You Really Need A Will?” says that a simpler life may mean you will need a less complex estate plan. However, few people’s lives are that simple. 10-19-2016

If you have minor children, you need a will to designate guardians for them. Also, a will or a trust will let you name someone to watch over assets for a disabled or elderly family member or a relative who may not be good with handling money.

Whether you have prized possessions or you want to bequeath some of your estate to the local animal rescue, a will is essential.

The state in which you live can make a big difference. In community property states, your surviving spouse will only inherit all your community property if all your children are also the children of that spouse. Otherwise, your one-half interest in your community estate will pass to your children. If there is any kind of animosity or resentment, they could make your spouse sell the house and send him or her packing because the kids own half the house.

Without a will, a pet can wind up in a shelter after you die if no one takes responsibility for it. A will can name a responsible person and make for a smoother transition for the animal.

A will can also help elderly parents avoid losing government benefits if you predecease them. If they are beneficiaries of your life insurance policy, a large payout may halt their government benefits unless you write a specific provision in your will.

Reference: Forbes (August 31, 2016) “Do You Really Need A Will?”