A Traverse City elder law practice, Rizzo & Associates, has just begun a new blog -- Michigan Elder Law Updates. I've already emailed friends in Kentucky a link to the article about changes in Michigan's property tax. As summer residents and property owners in my neighborhood, they will be very interested in this update.
You'll find Michigan Elder Law Updates here: http://michiganelderlaw.blogspot.com/
An article from Reuters published in the April 21, 2007 edition of The Washington Post poses this question: Should families pay the dutiful daughter or son who steps up to be an aging parent's primary caregiver?
Experts in the field of eldercare suggest there are good reasons why families should work out formalized agreements so that the family member shouldering the greatest care-giving burden is paid. To avoid hard feelings or disagreements later, it’s important for families to sit down, figure out what’s best for their aging parent, and perhaps put their agreement in writing.
Sometimes this care-planning is done as part of overall estate-planning. Some families transfer money out of an aging parent's name to help the parent more easily qualify for Medicaid if nursing-home care becomes necessary. Some states, Arkansas, California, Oregon and Washington, for example, have initiated programs that pay families to provide care so that seniors can remain at home. Home care is still less expensive than nursing home care. Some long-term care insurance polices will pay for home care also.
The article provides some helpful advice and can be the first step that helps families plan for the future. You can read “Compensating family caregivers” here.
Technorati tags: caregiving, caregiver, family caregiver, aging parents, aging, baby boomer, baby boomers, sandwich generation
Get It All on Paper: Without Vital Documents, Aging and Incapacity Put Families in a Terrible Bind, published in the Washington Post on Sunday, March 25, 2007 outlines the safeguards that families can put in place so that their financial and health care decisions are made as appropriate.
It's important to ensure that seniors have a durable power of attorney so that a stroke or a decrease in mental competency due to Alzheimer's disease or other conditions do not prevent a spouse or adult children from making necessary financial decisions that will allow a senior to qualify for Medicaid or to sell a home, when needed, as a senior moves to assisted living, etc.
Health care advance directives are also necessary documents to ensure that a spouse or other responsible adult may make health care decisions consistent with the express written wishes of a senior who becomes unable to participate in making those decisions.
You may read what AARP and the American Bar Association recommend as essential necessary advance planning in the Washington Post article.
Members of the State Bar of Michigan Elder Law and Disabilities Rights Section recently participated in a meeting with the Medicaid Policy Directors They advise that there are some of the immediate changes to the Medicaid rules as well as anticipated changes effective July 1, 2007. These changes relate to Medicaid eligibility for people in nursing homes, or who are in their homes but who are receiving assistance through the MI Choice Waiver program. Many of these rule changes are the result of the passage of the Deficit Reduction Act of 2005 (the "DRA").
Although these new rules dramatically alter the "Medicaid Planning" landscape, it is important to understand that there remain many viable planning techniques for people seeking to "protect assets" and still qualify for Medicaid assistance. Specifically, there are still ways to preserve assets by gifting appropriately and entering into certain type of care and home contracts.
SUMMARY:
1. Big Changes to the Medicaid "Divestment" Rules. As a result, as of 7-1-07 the Medicaid "lookback" period (the period during which asset transfers must be reported) will be extended from three to five years prior to the date of application. More importantly the date on which the transfer penalty will start will change from the date of transfer to the date when the individual transferring the assets enters a nursing home and would otherwise be eligible for Medicaid coverage. In other words, the penalty period does not begin running until the Medicaid applicant is in the nursing home and out of funds.
Continue reading "Medicaid eligibility and estate planning/gifting" »
