Sunday November 11th is Veteran's Day!
This day each year gives all Americans the opportunity to honor the
bravery and sacrifice of all U.S. Veterans.
Please take a moment this Sunday to remember the freedoms
Americans have because of the U.S.Veterans.
We at the LA LAW Center strongly feel that our American Veterans have
made tremendous sacrifices to preserve the
freedoms of the American people. We believe that these men and women
(& spouses) deserve many Veterans’ benefits. We have a mission to
assist all Veterans in understanding their benefits and getting their
well deserved entitlements! Also we want to ensure that carefully
planning is a part of this process to make sure the Veterans will
qualify for Medi-CAL if they need it in the future.
Please make a point to thank a veteran or a member of the U.S. Armed forces this weekend.
Friday, November 9, 2012
Monday, October 29, 2012
Elder Law Attorney’s roles in supporting our Aging Population
The specialty of attorneys understanding Elder
Law is becoming essential as our population ages. We are living much
longer but not necessarily “living better Attorneys specializing in Elder
Law are a great resource seniors and their families in many ways. Below are
some of the more important elder issues we at LA Law Center, LLP can help you
with.
Help
with Understanding Medicare and Medi-CAL Programs
Qualified legal help is available from elder
law attorneys to help individuals in applying for and accelerating payments for
Medi-CAL. An elder law attorney can also help with disputes with Medicaid. Also
attorneys who specialize in Medicare can help with disability claims and
sometimes this help is the only way claims are ever granted.
Financial
Elder Abuse or Exploitation
Seniors can be become lonely and then become
vulnerable to strangers (or family members) and become victims of financial
exploitation. Examples of the most common types of financial exploitation can
include:
· Pay in Advance
Prize-Winning Schemes
· Telephone Solicitations for Dishonest
Charities or Fraudulent Investments
· Identity Theft to Get
Credit Card Numbers and Other Information
· High-Pressure Door-To-Door
Sales
· Dishonest Home
Improvement Contracts
· Dishonest Miracle
Health Cures
· Unnecessary Living
Trusts through a Trust Mill
· Dishonest Funeral
Arrangement Plans
Seniors should have their affairs in order and
be protected with Powers of Attorney given to a trusted family member. Adult
children need to keep a close eye of their parents if the suspect any failure
in metal or physical capacities. Sometimes it is best to have an elder law
attorney explain these issues to seniors as they will take it more
seriously. They should also be warned of
and told to avoid any financial transactions that:
·
Anything requiring upfront deposits.
·
Contracts are to be signed without two or three days of
consideration in consultation with knowledgeable family members.
·
Any dishonest schemes sent
through the mail are guilty of mail fraud
Elder Law Attorneys and
your local area agency on aging can be a good source for help in these areas.
Most importantly you should have a review of estate documents to make sure your
estate is protected!!!
Settle
Family Disputes
An Elder Law attorney can help as an
arbitrator or a mediator in solving disputes among family members relating to
the care of elderly parents. There may be disagreements over many issues is an
estate plan and it may take an attorney to help sort though the family
politics! A lawyer may be necessary to settle the differences either through
informal mediation to court actions. We prefer to settle issues before they
destroy a family!
For more information, please go to our website
and look around. We try to educate our community and assist them with any elder
law needs they may have or fear. Visit our site or call us today to schedule
your FREE consultation with one of our experienced elder law attorneys.
1 (877) 537 - 8283
>>>
www.la-lawcenter.com <<<
Saturday, October 27, 2012
Elder Mediation Can Resolve Family Conflicts
Family ties become more complicated as a parent or sibling is aging and nearing death. The people in your family begin conspiring and suspicions arise about each other in fear that someone is trying to take advantage of the one dying or trying to cheat the rest of the siblings. Our Los Angeles based elder law firm sees many seniors with feuding family members quite often.
There are many cases reported to the National Care Planning Council about disputes between family members. Caregivers sometimes want to keep others away from the parent to avoid others taking advantage of them. Or caregivers may be taking advantage of them themselves and trying to keep other siblings out of it. Every situation is unique and none are sound for who is right and who is wrong. The problem is that amidst all the animosity, the elder’s wishes are not being met.
It is a difficult situation to communicate with one another when one child is the caregiver and the others are not. This is where having a Mediator can come in handy. Mediators are a neutral third party in your feud and can help correct issues caused by the disagreement. It’s smarter to mediate between each other with an experienced professional than to leave it to yourselves and possibly hurting ties with your siblings.
WHAT IS ELDER MEDIATION?
Mediation helps bring disputing parties together and have them negotiate solutions to their disagreements. Allowing for voices of each party to be easily communicated is the point behind mediation. It is also important to be able to establish resolutions between the elderly parents and their relatives.
Mediation also allows for the family to achieve results that work in everyone’s favor. Here are some reasons why it is important to use an Elder Law Mediator:
- Having a trained expert allows for new perspectives of the family that it could not have on its own
- Meeting together lets you preemptively negotiate problems before they arise
- The mediator can invite experts, such as care providers, to help shed light and give the family new perspectives
- Lets parents use their abilities rather than their limitations
- Encourages family members who are not involved to get involved
- Lets the parents express their wishes for everyone to hear
- Lets the mediator challenge family members and require them to take responsibility for their actions
- Creating a written plan helps make compliance more feasible.
There is various organizations and companies that provide expert Elder Mediators to help seniors and their families. Many of these elder mediators typically have accreditations such as, Professional or Geriatric Care Manager, Elder Attorney, Clinical Social Worker or Certified Mediator.
Mediators provide different sets of skills, so selecting the proper one for your family’s needs is important. This includes issues such as medical assessment, legal concerns over inheritance or power of attorney. Bringing the family together to communicate helps decide what exactly needs to be done and by whom.
Seniors Use Mediators to help the family plan for long term care.
Creating a care plan before its needed is a very important way to be prepared for Elder Care. Taking steps to help plan long term care are very important. First, you may want to designate a personal care coordinator for the individual to help streamline what process is going to be needed to care for the elder. It is important for other family members to be in compliance with the personal care coordinator and discuss what they all can do to provide long term care for the elder.
If communication is an issue in deciding who will be personal care coordinator, or if there is trouble getting everyone on board with long term care, a mediator may be exactly what you need to help.
If you would like to learn more about long term care planning, you can read the book “The 4 Steps of Long Term Care Planning” which is available online at http://www.longtermcarelink.net/a16four_steps_book.htm.
Where to Find an Elder Mediator
- In a phone book, the internet, or community senior services
- A friend or neighbors reference
- Contacting your local area agency on aging
- Contact the State Bar Association
The National Care Planning Council lists Professional Mediators throughout the United States on its website at http://www.longtermcarelink.net/a7mediation.htm
Please call us for a free phone consultation or appointment consultation to review your individual situation and determine if you would benefit from our experience and legal services.
What you do not know CAN hurt You!
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283Friday, October 26, 2012
California Medi-CAL Planning - Part Three
This is PART
THREE in our blog helping middle classed family members understand how to
qualify for Medi-CAL (Medi-Cal in
California) to pay part or all of the cost for skilled nursing home care.
Always remember,
you do not operate on yourself and we highly recommend that you get assistance
from a qualified elder law attorney for your family’s Medi-CAL planning, allows
you to legally qualify for the federal and state Medi-CAL Program. There are
several strategies a family can use to make sure their loved one can qualify
for Medi-CAL Long Term Care Benefits.
1. Special Home Exemption Rule
It's often the
case that an adult child will move into the family home to take care of aging
and or ill parents. In this case Medi-CAL has a special leniency rule to allow
transfer of the home to this adult child
and not result in a penalty for a transfer for less than value. If the child
provides care for a parent in a parent's home for at least two years, and that care kept the recipient out of a
nursing home, the property can be transferred to the child without penalty and
the property will not be a subject asset for Medi-CAL recovery. Medi-CAL will
require some proof of this. Typically an affidavit from a third-party care
provider such as a doctor or an agency stipulating that the care was given for
at least two years and resulted in keeping the care recipient out of a
long-term care facility, will be sufficient evidence. It's important to get the
assistance of an experienced elder law attorney to ensure you file this properly
and timely with the Medi-Cal Recovery
Unit.
2. Joint Tenancy
Some families
anticipating the need for Medi-CAL benefits are tempted to put a child's or sibling's
name on property titles to avoid probate and Medi-CAL recovery. It may not be a
good idea as there are problems with this strategy. They are:
- If the family member that is put on the home’s title becomes subject to a judgment, (arising from an accident or debt obligation), then at least 50% of the family home can be lost to a court ordered judgment.
- The family member on the title must consent to sale of the property. This may cause problems with the wishes of the original owner.
- Redoing the title must occur at least 3 years prior to claim in order to avoid look back rules and a sanction on a gift to a non spouse owner.
- The person assuming joint ownership has received a gift and loses the step-up in basis at death. Capital gains taxes may have to be paid. And if the property is not the principal residence of the new tenant, the capital gains exclusion cannot be used either.
- Note: In California, an Elder law attorney can draft a grant deed transfer with a life time occupancy agreement to avoid these problems.
Take advantage of
a free phone consultation or appointment for a free 30 minute consultation to
review your individual situation and determine if you would benefit from our
experience and legal services.
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Friday, October 19, 2012
California Medi-CAL Planning - Part Two
This is PART TWO
in our blog helping middle classed family members understand how to qualify
for Medi-CAL (Medi-Cal in California) to
pay part or all of the cost for skilled nursing home care.
Always remember,
you do not operate on yourself and we highly recommend that you get assistance
from a qualified elder law attorney for your family’s Medi-CAL planning, allows
you to legally qualify for the federal and state Medi-CAL Program. There are
several strategies a family can use to make sure their loved one can qualify
for Medi-CAL Long Term Care Benefits.
1. Intend to Return Home
If a single
person receiving Medi-CAL care in a facility owns a house, this family home
does not disqualify them form Medi-CAL, but could be subject to sale to pay for
Medi-CAL expenses. The house is only protected if a qualifying child or
dependent lives there or if the recipient intends on returning home. In California you must always
have the Medi-Cal recipient (or their attorney-in-fact) sign an intent to
return home.
Most families
sell the home and end up with a large amount of cash that must be spent down
before the loved one qualifies for Medi-CAL. Keeping the home avoids losing the
entire value of it to spend down. By retaining the home, Medi-CAL recovery may
not come after the full value of the home when the loved one dies.
Potential rental
income from the house would also go towards paying the nursing home care cost
and reduce the amount that Medi-CAL would have to pick up. This could mean that
Medi-CAL recovery using this strategy might go after a smaller share of its
cost in the recovery process.
In California,
an experienced Elder Law Attorney may be able to help you transfer the home to
an irrevocable trust to prevent Medi-CAL recovery on the family home.
2. Medi-CAL Treatment of a Home
If the community
spouse lives in the home then the home is exempt
from determining Medi-CAL eligibility. It does not count as an asset and
prevent the institutional spouse from receiving Medi-CAL help. On the other
hand any other real estate property, not the primary residence, will have to be
converted to cash and spent down before Medi-CAL will start paying the bill.
If the well spouse
living in the home does not in turn need Medi-CAL help in the future then one
of two things can happen to the house after the death of the institutional
spouse. Legally Medi-CAL has a claim against the property for recovery
services. At the death of the community spouse, the property cannot be sold
until the lien is satisfied.
In California, if the property is properly transferred into a
Medi-CAL Asset Protection Irrevocable Trust, the state does not consider the
house an asset for recovery. Always work with an experienced elder law attorney
when dealing with recovery issues. You can never assume what your state
recovery program will actually do.
We will discuss more issues regarding real property in our next blog.
We invite you to take advantage of a free phone consultation or
appointment for a free 30 minute consultation to review your individual
situation and determine if you would benefit from our experience and legal
services.
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Tuesday, October 16, 2012
California Medi-CAL Planning - Part One
A middle classed family facing the
prospect of a loved one needing long-term care that has a moderate income and
assets may need Medi-CAL (called Medi-Cal in
California) to pay part or all of the cost for skilled nursing home care.
Using a qualified elder law attorney
for your family’s Medi-CAL planning, allows you to legally qualify for the federal
and state Medi-CAL Program. There are several strategies a family can use to
make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.
Over the next few blog posts we will give a
brief overview of these strategies.
1.
Prepaid Funeral Instead of or in Addition to Burial Funds
Federal rules allow a person on Medi-CAL
to keep up to $1,500 for funeral expenses. California allow an applicant to buy
a prepaid funeral plan with additional
costs such as the burial plots, caskets and vaults to be tacked on, thus
raising the limit.
2.
Use of Spend Down Resources
People assume money being spent down
for Medi-CAL eligibility needs to be applied to care costs. In reality, Medi-CAL
is only interested in seeing the potential Medi-CAL recipient's resources
reduced to less than $2,000. How the
money is spent is only questioned if there has been a transfer for less than
value.
In order to qualify for Medi-CAL
more quickly, you may want to use some of the “spend down” money to pay off
debt, trade in the old car and buy a new one. (Medi-CAL typically allows a
community spouse to retain just one car), or fix up the house. Do not let a
skilled nursing staff member tell you that you can only pay for nursing care to
qualify for Medi-CAL…this is NOT TRUE!!!
3.
Stacked Gifting is only allowed in California
California is the only state that has not
adopted the Deficit Reduction Act, and stacked gifting is still legal and
allowed by Medi-CAL as long as it is completed in a specific way. This is very
tricky and should be guided by a California
Elder Law Attorney.
What you do not know can hurt you... stay tuned to this blog for more Medi-CAL Planning tips.
Take advantage of a free phone consultation or
appointment for a free 30 minute consultation to review your individual
situation and determine if you would benefit from our experience and legal
services.
For more information go to www.la-lawcenter.com
or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Saturday, September 22, 2012
Perpetrators of Elder Abuse Are Usually Family Members
Elderly people need trustworthy family or individuals to
help them as they age. As people grow older they need guidance either
physically or psychologically, which makes them dependent upon caregivers or
family members. This dependence makes them especially vulnerable for abuse.
It’s hard for an older person to complain about someone
taking advantage of them when that person is taking care of them by providing
meals, transportation and making financial decisions. The threat of cutting off
support to the elderly person from the child or caregiver is enough to keep
them quiet about theft, physical abuse or neglect. Threats of violence may also
be used against them.
Nearly a tenth of the elderly population is estimated to be
abused, however; only 10% of it is ever reported. Abuse in nursing homes has
more attention towards it but most elder abuse comes from family members. Most
states have laws to protect the elderly from this abuse.
Here are some of the ways the elderly could be abused:
·
Sexual abuse
·
Physical abuse
·
Emotional abuse
·
Financial abuse, stealing money or changing
title on assets
·
Active neglect where a caregiver actively fails
to fulfill care-taking functions, such as abandoning, depriving them of food,
water, heat, hygiene, eyeglasses, dentures, or other health related services
·
Passively neglecting by not willful failure of
care-taking responsibilities, such as ignorance of care giving knowledge,
infirmity, or disputing the value of services.
·
Self-neglecting by the individual not able to
care for themselves.
Every state has an agency to receive a complaint about
abuse. Failure to report elder abuse, in certain states, is a crime. To contact
an abuse complaint department, visit http://www.cdss.ca.gov/agedblinddisabled/PG1298.htm
and call one of the various departments in your area.
Monday, September 17, 2012
The No Matter What Documents!! Power Of Attorney Documents
Sadly, death
or mental incapacity due to illness or accident may strike at any time.
Executing these documents NOW, while healthy and competent will prevent the
need for unnecessary court intrusion and expense, and unintended consequences!
With respect to creating these ‘NO
MATTER WHAT DOCUMENTS’… there is no time like the present! There are two kinds of Powers of Attorney, one is for
health care and medical decisions and the other is for financial decisions.
Both of these are important for you and your loved ones to have.
1.
Choosing a Personal Representative for Health Care Decisions
The Advance Health Care
Directive allows you to make decisions about the ability to keep you alive in
certain circumstances. This may include life support, artificial nutrition or
hydration. You may also specify any medications you would want or where you would
like to spend your last moments. These documents are flexible and help your
family members guide you through your last wishes.
Executing an Advanced
Health Care Directive (medical durable power of attorney) assigns the
person of YOUR CHOICE to act on your behalf to make medical decisions if you are
mentally incapable of making those decisions yourself, without the need of
proceeding to court for an appointed conservator of your person.
2. Choosing
a Personal Representative for Financial Decisions
For financial decisions, you, as the
principal, appoint one or more people to be your “attorney-in-fact” to all of
your financial decisions. Your attorney-in-fact can make all the same financial
decisions regarding your assets and liabilities as you can.
Power of Attorney can
take effect immediately or be specified to take effect when you become
incapacitated or incompetent as declared by one or more physicians. This is why
the power of attorney is considered durable, because it survives your
incapacity or incompetency.
Executing a Durable
Power of Attorney identifies a the
person of YOUR CHOICE to act on your behalf to make financial decisions if you
are mentally incapable of making those decisions yourself, without the need of
proceeding to court for an appointed conservator of your estate (assets).
3. Choosing
a Personal Representative for Communications with Doctors and Medical
Facilities
Under the
HIPAA Privacy Rule, an individual may authorize release of his or her protected
health information (PHI) to only a specific person(s). Executing a HIPAA Release Form allows your doctor
to speak with those you designate regarding your health issues if you are
mentally incapable… even for a short time.
Take advantage of a free phone
consultation or appointment for a free 30 minute consultation to review your
individual situation and determine if you would benefit from our experience and
legal services.
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Monday, July 30, 2012
VA AID & ATTENDANCE RULES MAY BE CHANGING!
Many US Wartime Veterans and their widowed spouses
that are over the age of 65 can currently qualify for a pension called Aid and
Attendance pension that can help pay for cost of long term care. In many
cases, we help qualify needy veterans (widowed spouses) for this pension even
though they have gifted away assets greater than the limits imposed by the
VA. But we have been notified, this may be changed and gifting will not
be allowed for VA benefits qualifications.
Congress is in deep discussions
about the increase in veterans applying for VA benefits and the dishonest
practices of certain financial investment or insurance companies trying to sell
annuities to naive seniors in order to qualify them for VA benefits and in some
cases they do not qualify or are then disqualified for Medicaid (Medi-CAL in California). This sells
practice is rapidly growing and causing seniors may financial problems and
false promises. United State Senate is reviewing legislation to impose a look
back and a penalty period, similar to what the Medicaid program has in place
with no gifting.
This legislation must
go through many reviews and steps before it can be voted on by both houses of
Congress and then presented to the President for his approval, it does call for
a 3 year look back and a penalty that would equate to a number of months of
ineligibility for benefits based on the amount of money transferred. It is
geared to be very similar to the way the Medicaid rules worked before Congress
changed them in February, 2006 under legislation known as the DRA (Deficit
Reduction Act).
We in
California are lucky at the moment that we do not have the DRA adopted in our
state (in regards to Medi-CAL or VA Benefits, so for the time being, it is important to look at your estate and if you
think VA or Medi-CAL planning is an important to you or your family, you should
talk to an elder law attorney ASAP. We
anticipate that any changes to both programs will not effective until 2013 or
later. Now is the time is now to closely consider you options for long
term care plans. As an elder law firm, we can help you with many options
that we can take now so that you won’t be hurt by any legislative changes in
the future.
Please call us for a free
phone consultation or appointment consultation to review your individual
situation and determine if you would benefit from our experience and legal
services.
What you do not know
CAN hurt You!
For more information
go to www.la-lawcenter.com or call
us at:
Local Phone: (818)
241-4238 or
Toll Free Phone: (877) 537-8283
Tuesday, June 19, 2012
Having the Freedom of Choice with Long Term Care
It is very important to understand your loved ones care needs before they become a crisis for the care recipient, the care giver and
the rest of the family. Understanding the process of government programs will
also help in the care-giving decision-making.
Prior knowledge can help
prevent crisis planning and creating great stress for the well spouse and other family members. If your family does not have the money to privately pay for in home or assisted living care, option is Medi-CAL. Medi-CAL usually
has its program target spend the end of their years in a nursing home. Other
options are available, however, very limited with long waiting lists.
There are common funding options to help provide money for
care services, such as
Long-Term Care Insurance,
Life Settlements,
Reverse Mortgage,
Cashing Out Of a Principal Residence through
Sale or Buyback Arrangement,
Retirement Savings Account.
Here are some common asset-saving strategies can be
Medi-CAL Planning,
Rearranging Insurance Plan,
Private Home Care Arrangements,
Knowing the price of Communities that provide
care,
Purchasing good Long-Term Care insurance, Commitments from the family to share care and
Tax Advantage Strategies. It is important to talk with someone who can review your entire estate and ways to protect your estate.
Please call us for a free phone
consultation or appointment consultation to review your
individual situation and determine if you would benefit from our experience and
legal services.
What you do not know CAN hurt You!
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Friday, June 15, 2012
Probate 101… What Happens When Someone Dies without a Trust
Many people are unfamiliar with the various steps required before distributing an estate to its heirs and beneficiaries.
When a decedent dies without setting up a living trust a probate proceeding must be filed with the court. The Probate Court Procedures are required whether the decedent had a will or not, unless the estate is under $150,000 and doesn’t contain real estate. Property may then be transferred to the heirs by using an affidavit. The only way to avoid probate with real property and/ or over $150,000 in assets is to have assets transferred into a trust. The following is an overview of Probate.
In order to streamline the process, hiring an experienced probate attorney is very helpful. Probate attorneys are familiar with the process of transferring real estate and personal property, as well as the tax accounting aspects of distribution of the estate, such as the estate tax. They will prepare and file the necessary papers with the court and obtain a court order that distributes the property in the estate to the heirs and beneficiaries.
Here’s an explanation of the process:
When there is a will, an Executor is the person designated to administer the decedent’s estate. When there is no will, no Executor is named in the will, or the Executor is unable to act, an Administrator is appointed. These positions are considered Personal Representatives.The Personal Representative must collect, conserve, manage and control the assets of the estate, pay the decedent’s debts and taxes due and distribute the estate’s worth when there is a will. When there is no will, the estate is distributed by the laws of Interstate Succession. Interstate Succession generally states who will inherit your estate. This usually includes spouse and children first. If your spouse or children are not alive then relatives are the next to inherit. If there are not relatives, the property goes to the state.
The administration process of the estate begins when the Will, or no will, has been admitted to probate by the Superior Court and Letters Testamentary or Letters of Administration are issued. These letters give the Personal Representative the ability to gather the decedent’s assets into their estate.
In California, the law requires notice from the estate to all creditors of the decedent to file their claims. If this notice is filed with the court and then published in a local newspaper, creditors have a window of four months to file their claim with the court. If there is no claim within the four month window, the estate does not have to pay.
The personal representative must also create an inventory of the assets owned by the decedent when they die. Tax returns and accounting that need to be filed with the court come from this inventory. The inventory and non-probate assets, such as life insurance, joint tenancy property and trust assets are required for tax purposes, so they must be appraised.
The estate tax is placed upon the transfer of property at death. Generally the estate is able to pay for the tax but it may be charged to the beneficiaries of the estate. Returns are filed for decedent’s estates with a gross value over the estate tax exemption amount. A gross value includes assets in the probate estate and may also include life insurance, jointly-owned property and assets that were given by the decedent. The estate tax must be paid by 9 months.
The length of the probate process depends on the complexity of the estate. It may take only 6 months, but it can also continue on for years. In order to avoid the probate process, people implement a living trust before they die.
Personal Representatives and the probate lawyer’s are compensated for the work, in California, by collecting a percentage of the gross estate.
Living Trust’s help reduce the headache of having to deal with a prolonged probate. Living Trust’s allow for the nearly immediate distribution of assets, and generally cost less than a probate.
Take advantage of a free phone consultation or appointment
for a free 30 minute consultation to review your individual situation and
determine if you would benefit from our experience and legal services.
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283
Thursday, June 7, 2012
Who Should Consider a Medi-CAL Asset Protection Irrevocable Trust?
In California, we are very lucky that Medi-CAL Asset Protection Irrevocable Trusts can be established by older adults (or persons facing the need for long term care) who wish to protect their assets (including the family home) from recovery from the State. Generally, anyone that is considering this type of pre-planning needs to have a sense of emotional security, because he or she must be ready to relinquish direct control over his or her assets. The control of these assets is turned over to a loved and trusted family member, who acts as trustee of an Irrevocable Trust. The trustee is in charge of guarding and distributing the assets in the Irrevocable Trust. Meanwhile, the person needing long term care continues to have direct control over his or her income, such as social security and pensions, as well as any assets chosen to remain outside the Irrevocable Trust.
Irrevocable Trusts have the additional benefit of passing assets to heirs (beneficiaries) of without requiring a probate. If needed, the Irrevocable Trust can set incorporate special purpose estate planning, such as Special Needs Trusts for heirs that are on SSI or other government programs; or Discretionary Trusts (Spend Thrift Trusts) for heirs that can not properly manage their financial affairs.
Currently there is no waiting period for the transfer of assets to an Irrevocable Trust in the California Medi-CAL rules, as long as the asset reallocations are strategically planned and executed within the Medi-CAL Stacked Gifting rules.
We are waiting for the DRA (Deficit Reduction Act) to be adopted by California, which is expected to require California to have a waiting period of more than 2 years after a transfer. When the DRA is adopted we expect the stacked gifting to not be allowed. There will be other options for asset protection but it will not allow the amount of asset that we can currently protect. So it is a good idea for anyone thinking they will need Medi-CAL in the next 5 years to help pay for long term care in a nursing home to do pre-crisis planning NOW! This means setting up an Irrevocable Trust and transferring the bulk of asset into this trust to start the timeline as soon as possible.
At this moment we can help you set up an Irrevocable Trust and transfer assets into this trust. This process will help you qualify for VA and Medi-CAL benefits within a short period of time (the time it takes to make all transfers and stacked gifting processes guided by our staff.
We are passionate about helping families preserve their assets with the least amount of time and trouble. We offer free consultations to seniors and their adult children.
Irrevocable Trusts have the additional benefit of passing assets to heirs (beneficiaries) of without requiring a probate. If needed, the Irrevocable Trust can set incorporate special purpose estate planning, such as Special Needs Trusts for heirs that are on SSI or other government programs; or Discretionary Trusts (Spend Thrift Trusts) for heirs that can not properly manage their financial affairs.
Currently there is no waiting period for the transfer of assets to an Irrevocable Trust in the California Medi-CAL rules, as long as the asset reallocations are strategically planned and executed within the Medi-CAL Stacked Gifting rules.
We are waiting for the DRA (Deficit Reduction Act) to be adopted by California, which is expected to require California to have a waiting period of more than 2 years after a transfer. When the DRA is adopted we expect the stacked gifting to not be allowed. There will be other options for asset protection but it will not allow the amount of asset that we can currently protect. So it is a good idea for anyone thinking they will need Medi-CAL in the next 5 years to help pay for long term care in a nursing home to do pre-crisis planning NOW! This means setting up an Irrevocable Trust and transferring the bulk of asset into this trust to start the timeline as soon as possible.
At this moment we can help you set up an Irrevocable Trust and transfer assets into this trust. This process will help you qualify for VA and Medi-CAL benefits within a short period of time (the time it takes to make all transfers and stacked gifting processes guided by our staff.
We are passionate about helping families preserve their assets with the least amount of time and trouble. We offer free consultations to seniors and their adult children.
Monday, June 4, 2012
Elderly Parents in Planning Financially for Their Long Term Care
You
may be taking care of elderly parents now or looking at that possibility in the
near future. According to a report from USATODAY/ABCNews/Gallup Poll, 41% of
baby boomers are helping take care of elderly parents by providing personal
help or financial assistance or both.
If
financial planning and long term care planning have not been done previous to
the need for care, the burden falls on the caregiving family member. Decisions
about how care will be paid for, who will be responsible for managing the
estate as well as how the long term care will be given can cause stress and
contention among family members.
It
is best for parents and all family members to be involved in planning for
future financial needs. The financial resources being used today could
change drastically with the occurrence of a stroke, illness or onset of
dementia. In order to plan financially for long term care, you need to know
what the costs are now and what they will be in the future.
Every
year MetLife does a survey of long term care costs. Their 2010 survey shows
that the average daily rate for private nursing home is $229 which is up from
$219 in 2009. Assisted living monthly base rate cost rose to $3,293 in 2010
from $3131 in 2009. Home health aids average $21 an hour.
Planning
financial needs can be very difficult, considering you do not know when long
term care will be required or how long it will be needed. You can determine
what will be needed in certain living situations. Staying in your home for care
will require Professional
Home Care assistance, travel accommodations to doctor appointments, help
with shopping, meals, medical supplies and medication and possibly a 24-hour
attendant. Even if a family member is doing most of the care, eventually
professional care will be required or a move to a nursing home facility will be
necessary.
When
evaluating your present income and assets consider how they would work for
future needs.
- What are my care options?
- What type of long-term care can I afford?
- Do I have long term care insurance?
- Are there assets I can sell?
- If I stay at home how will I pay for care?
- Do I have to sell the house to pay for other living arrangements?
- Are there other financing alternatives?
- Do I have life Insurance or the means to pay for a funeral and burial?
- Will my spouse be cared for financially?
- Should I do Medicaid planning?
- Do I have the legal documents that may be needed?
An
article by Thomas Day, Director of the National Care Planning Council,
titled “Paying the Cost of Care,” reviews some of the financial options that
can be used.
“Tangible
assets that might produce enough income to pay for long term care might include
investment property such as rentals, commercially leased property, land, a
farm, second home or a business..."
"Some
individuals are heavy into real estate and short on cash. If the intent was to
cash out of the investment at some future point, then a sale is warranted. But,
it seems a shame to sacrifice in early years to establish an investment only to
throw it away to long term care. It would make more sense to use income from
the investments to buy long term care insurance."
Long
term care insurance is one option for paying for care. Long term care
insurance helps pay for the care you need when you can no longer care for
yourself. It can protect your family's financial future and your own
investments. There are qualifications that need to be met with health and age.
This type of insurance is more expensive the older the person and almost
impossible to get if age related illness has already occurred.
Senior
Financial Planners, Elder Law Attorneys
and Veteran
Benefits Consultants can assist you in evaluating your needs and future
planning.
Senior
Financial Planners are expert in working with seniors and their families to set
up long term care plans. They usually work with an Elder law Attorney and
Care Manager
(Professional) to give you all options and resources for care.
Elder
Law Attorneys help with Medicaid Planning and Asset protection as well as legal
documents needed for final requests.
If
staying in your home is a desired option, a Reverse Mortgage
can supply the funds to pay for home care.
Another
option for veterans who served during a time of war is the Aid
& Attendance Benefit. This benefit provides extra income up to
$1,949 to help pay for home care, assisted living and medical costs. It will
also pay for widows or widowers of the Veteran. To learn more about qualifications
for these benefits contact a Veteran
Benefit Consultant in your area.
Knowing
your needs and financial resources is paramount before making any long term
care decisions. Working together, both parents and family members can ease the
stress and burden of elder care needs.
>>>>> For More Information go to www.la-lawcenter.com or call 877.537.8283 <<<<<
Wednesday, May 30, 2012
Gifting Your Home Directly to Your Children Can Have Negative Consequences
Many seniors are thinking they can avoid probate, reduce their estate and directly give their home to their children. This can be done, BUT!!... giving away your residence can have major tax consequences, among other possible estate problems if it is not transferred properly!
When you transfer property valued at more than $13,000 in any one year, you are subject to having to pay a gift tax (currently 35%). However, current federal law states you can gift a total of $5 million over your lifetime without incurring a gift tax (but you must file an IRS Form 709 Gift Tax Return to document the gift). This means that if your home is worth less than $5 million, you will not likely have to pay gift taxes, however, you will have to file a gift tax form. Understand that we are expecting Congress to change the gift tax exemption, which is now scheduled to revert to $1 million at the end of 2012 unless Congress acts to do something different.
As part of your lifetime gift tax allowance, you and your children may not have to pay gift taxes on this gift. However, if your children sell the house right away, they may be facing another kind of tax, capital gains taxes. When you give away your property, the tax basis (typically the original cost plus improvements) of the property for the person gifting the property becomes the tax basis for the child receiving the property. For example, suppose you bought the house many years ago for $20,000 and now the house is estimated to be worth $400,000. If you give your house to your children, their tax basis will be $20,000. If your children sell the house right away, the capital gains taxes will be on the difference between $20,000 and your basis. To minimize capital gains tax, your children must live in the house for at least two years (out of the last 5 years) before selling it. This way, they can exclude up to $250,000 ($500,000 for a couple) of their capital gains from taxes. Any amounts above the personal residence credit will be taxed currently at 15% Federal Capital Gains Tax, and 10.33% California Tax.
It is important to understand that inherited properties (bequeathed to a person and transferred after death) does not face the same tax situation as pre-death gifted properties. If your children were to inherit your home, the tax basis would be "stepped up," which means the basis would be stepped up to the current value of the property at the time of your death. If the house is sold, the new basis will be the value of the property at the time of your death, eliminating or minimizing capital gains tax. However, this may not be the best solution for the asset protection. If your home remains in your estate and you use Medi-CAL (Medicaid), Medi-CAL Recovery Department recover their costs against the property upon the death of the surviving spouse, if the property was in the name of the spouse at that time.
There are other options for giving your house to your children, including transferring it into an Irrevocable Trust, or outright gifting accompanied by a Lifetime Occupancy Agreement, which can save your home from recovery and if written correctly, still be considered an inheritance when you (and your spouse) pass away, getting the step up in basis. So, before you gift your family home, please talk to an elder law attorney, who can advise you on the best method for asset protection and making sure your home to properly transferred to your children!
LA LAW Asset Protection / Elder Law Attorneys offer free consultations to help you understand your options for saving your family home in regards to taxes and Medi-CAL recovery.
>>>>> Please call 877-537-8283 or VISIT US AT www.la-lawcenter.com <<<<<
When you transfer property valued at more than $13,000 in any one year, you are subject to having to pay a gift tax (currently 35%). However, current federal law states you can gift a total of $5 million over your lifetime without incurring a gift tax (but you must file an IRS Form 709 Gift Tax Return to document the gift). This means that if your home is worth less than $5 million, you will not likely have to pay gift taxes, however, you will have to file a gift tax form. Understand that we are expecting Congress to change the gift tax exemption, which is now scheduled to revert to $1 million at the end of 2012 unless Congress acts to do something different.
As part of your lifetime gift tax allowance, you and your children may not have to pay gift taxes on this gift. However, if your children sell the house right away, they may be facing another kind of tax, capital gains taxes. When you give away your property, the tax basis (typically the original cost plus improvements) of the property for the person gifting the property becomes the tax basis for the child receiving the property. For example, suppose you bought the house many years ago for $20,000 and now the house is estimated to be worth $400,000. If you give your house to your children, their tax basis will be $20,000. If your children sell the house right away, the capital gains taxes will be on the difference between $20,000 and your basis. To minimize capital gains tax, your children must live in the house for at least two years (out of the last 5 years) before selling it. This way, they can exclude up to $250,000 ($500,000 for a couple) of their capital gains from taxes. Any amounts above the personal residence credit will be taxed currently at 15% Federal Capital Gains Tax, and 10.33% California Tax.
It is important to understand that inherited properties (bequeathed to a person and transferred after death) does not face the same tax situation as pre-death gifted properties. If your children were to inherit your home, the tax basis would be "stepped up," which means the basis would be stepped up to the current value of the property at the time of your death. If the house is sold, the new basis will be the value of the property at the time of your death, eliminating or minimizing capital gains tax. However, this may not be the best solution for the asset protection. If your home remains in your estate and you use Medi-CAL (Medicaid), Medi-CAL Recovery Department recover their costs against the property upon the death of the surviving spouse, if the property was in the name of the spouse at that time.
There are other options for giving your house to your children, including transferring it into an Irrevocable Trust, or outright gifting accompanied by a Lifetime Occupancy Agreement, which can save your home from recovery and if written correctly, still be considered an inheritance when you (and your spouse) pass away, getting the step up in basis. So, before you gift your family home, please talk to an elder law attorney, who can advise you on the best method for asset protection and making sure your home to properly transferred to your children!
LA LAW Asset Protection / Elder Law Attorneys offer free consultations to help you understand your options for saving your family home in regards to taxes and Medi-CAL recovery.
>>>>> Please call 877-537-8283 or VISIT US AT www.la-lawcenter.com <<<<<
Wednesday, February 15, 2012
Using An Elder Law Attorney
As the population of the country ages, more people will run into legal or planning issues that are unique to seniors. This might include help with obtaining veterans' pensions, Medicare or Medicaid. Other issues might include the need for long term care planning, solving disputes with family members, dealing with financial elder abuse, providing for powers of attorney, medical care planning or guardianship.
Elder Law attorneys represent a growing specialty of the law that helps the elderly deal with many of the problems mentioned above. But Elder Law attorneys can often do much more for their clients. Below is a list of services that an elder law attorney might provide. This list was taken from the National Academy of Elder Law Attorneys' website.
Below is a list of what an elder law attorney (lawyer) might do:
· Preservation or transfer of assets seeking to avoid spousal impoverishment when a spouse enters a nursing home
· Medicaid qualification and application and Medicaid planning strategies
· Medicare claims and appeals
· Social security and disability claims and appeals
· Supplemental and long term health insurance issues
· Disability planning, including use of durable powers of attorney, living trusts, "living wills," for financial management and health care decisions, and other means of delegating management and decision-making to another in case of incompetency or incapacity
· Conservatorships and guardianships
· Estate planning, including planning for the management of one's estate during life and its disposition on death through the use of trusts, wills and other planning documents
· Probate
· Administration and management of trusts and estates
· Long term care placements in nursing home and life care communities
· Nursing home issues including questions of patients' rights and nursing home quality
· Elder abuse and fraud recovery cases
· Housing issues, including discrimination and home equity conversions (reverse mortgage)
· Age discrimination in employment
· Retirement, including public and private retirement benefits, survivor benefits and pension benefits
· Health law
· Mental health law
Joseph McHugh is an elder law attorney serving the Burbank / Glendale area. LA Law Center, LLP can be reached at (818) 241 - 4238 or visit us online at www.la-lawcenter.com
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