The overwhelming majority of nursing home residents receive Medicaid. That’s right! Over 70% of nursing home residents right now are getting Medicaid. What about the rest? They’ll be on Medicaid too… in 6-18 months! Think about it… can we all afford $7000-$9000 per month, every month? Most folks can’t and Medicaid is the solution!
MYTH: I have to sell all my stuff and spend all the money on long term care before Medicaid will help!
FACT: You are allowed to keep several kinds of “exempt” assets, including your car, your family home and the stuff inside! Not to mention other items.
MYTH: If I gave anything away in the last 3 years (or 5 years or whatever the time limit is now), my spouse and I are disqualified.
FACT: Not so fast. Some assets can be transferred without penalty under certain circumstances. Find out which legal loopholes do you qualify for!
MYTH: There’s nothing we can do! Now that my spouse needs skilled nursing care, we may as well sign over our life savings, family cottage, homestead and give up!
FACT: There is NO reason for ANY married couple to be paying “private pay rates” for skilled nursing. Using LifePlan™ Crisis techniques, I’ve helped thousands of married couples save millions… almost all of their life savings… not just the small “protected amount”. I can do the same for you.
MYTH: As usual, married folks get all the breaks… I’m single so there’s nothing I can do… I’m the one who has to give up!
FACT: Different LifePlan™ Crisis techniques are available for single people. There is always something we can do to get you the care that you or your loved one needs – without losing your life savings!
MYTH: Today’s LifePlan™ Crisis techniques solve everything! We don’t have to do anything until it’s time for long term care!
FACT: Medicaid rules change all the time and they’re not getting any easier. As Medicaid gets more and more difficult we respond with more advanced Crisis LifePlanning™ strategies, but the best approach is to plan ahead and avoid the crisis altogether. Find our how at the next LifePlan™ Essentials Workshop… click on the button or call us and sign up!
MYTH: My spouse will qualify for Medicaid right away because our prenuptial agreement says that my stuff is mine!
FACT: Pre-nuptial agreements, post-nuptial agreements, and legal separations are all irrelevant for Medicaid purposes.
Common Mistakes Made With Trusts in Michigan
Estate PlanningTrusts are a great estate-planning tool that can be used to manage how your assets will be distributed to your beneficiaries. The basic concept is that you put assets into a trust and name a trustee who is in charge of holding and managing those assets for the benefit of the trust’s beneficiaries. While this premise sounds simple enough, trusts must be created in a particular way in Michigan in order to be valid and unfortunately mistakes are often made. This article briefly goes over how a valid trust is created and then outlines a few common mistakes with trusts in Michigan that should be avoided as they can cause your trust to fail.
Elements Needed To Create A Valid Trust
In order to create a valid trust there are certain requirements that must be satisfied. The following elements must be present or else your trust will not be valid in Michigan:
Settlor Must Intend To Create A Trust
The settlor of the trust must intend to create a trust at the time when the trust is created. This intent can be manifested via the settlor’s words and actions. It is not enough if the settlor intends for the trust to be created at a later date; in order to be valid he or she must have the present intent to create a trust.
A Trustee Must Be Established
A qualified trustee must be appointed to hold the trust property.
Assets Must Be Put Into The Trust
The trustee must be given some assets to manage on behalf of the beneficiaries.
The Trust Must Have Named Beneficiaries
The trust must have a named beneficiary or beneficiaries. This group must be ascertainable (it must be certain and definite).
The Trust Must Have a Legal Purpose
The trust must have a legal purpose that is not against public policy in order to be valid.
It is important to be aware of these trust creation requirements as many common mistakes that cause trusts to fail in Michigan have drastic consequences simply because they invalidate one of the requirements listed above.
Common Mistakes That Can Cause A Trust To Fail
While there are many mistakes that can potentially invalidate a trust, a few of the commonly committed errors in Michigan are briefly outlined below:
The Settlor Fails To Show The Required Intent To Create A Trust
As noted above, a trust can only be valid if the settlor intended to convey their property into the trust for the benefit of the trust’s beneficiaries. This mistake is often made by using ambiguous wording in the trust instrument.
Neglecting To Put Assets In The Trust
In order for a trust to be valid the settlor must actually transfer assets into the trust. This is done by both listing the assets on the schedules attached to the trust and by taking physical steps to change the title of those assets. If the trust is not funded then it will fail.
Failing To Use Effective Trust Language
A valid trust must contain language that indicates that a legally binding agreement has been entered into. A trust can fail for using ‘precatory language’, aka language that expresses a future wish rather than a present intent.
Failing To Name Ascertainable Beneficiaries
The trust instrument must specifically identify who is to benefit from the trust. In other words, the trust’s beneficiaries must be ascertainable. If a trust does not have ascertainable beneficiaries then it will fail.
Need Legal Advice?
Creating a trust is complicated and mistakes are easy to make. Working with an experienced estate planning lawyer like David L. Carrier helps ensure that your trust is valid and functions how you want it to. To set up a meeting with David Carrier, contact our office today.
Nursing Facility Transition (NFT)
Medicaid, Nursing Home CareDo you have a loved one in a nursing facility who would like to return home?
The Nursing Facility Transition (NFT) helps those currently living in a nursing home move into a house, apartment, or assisted living and helps put necessary services in place.
Individuals work with a Transition Specialist who will explain the process and conduct an assessment to determine what services would be needed in order to transition out of the nursing home. They will then work together to develop a plan centered around the individual’s needs and choices (if desired, family and friends may also be included in the process).
Each situation and plan of care is individualized but examples of services provide include bathing, dressing, home delivered meals, assistance with medication and housekeeping.
Qualifications:
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Fiduciary Access to Digital Records
Estate PlanningWho gets control of your Facebook, email and other cyber accounts after you die? Michigan has enacted the Fiduciary Access to Digital Assets Act that will let account holders plan ahead and grant others access to the accounts after the owner has passed away.
Deed Protection and Medicaid Eligibility
Medicaid[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” box_shadow_on_row=”no”][vc_column][vc_column_text]Medicaid imposes stringent limits on income and assets of recipients, consistent with its mission to provide a health care safety net for the poor and for those whose personal resources are insufficient to pay the full cost of care. In order to fulfill this mission, Medicaid also recovers expenses paid on behalf of recipients from their estates under certain circumstances. Medicaid is the largest source of funds for institutional long-term care expenses. It pays nearly half of the total amount spent on nursing homes, followed, respectively, by out-of-pocket funds of long-term care consumers, Medicare, private long-term care insurance, and other public and private funding sources.[/vc_column_text][vc_separator type=”transparent” up_style=”px” down_style=”px”][vc_video link=”https://vimeo.com/215109165″][vc_separator type=”transparent” up_style=”px” down_style=”px”][vc_column_text]Unless they are among the minority who have long-term care insurance, individuals contemplating paying thousands of dollars out-of-pocket every month for long-term nursing home care face the possibility of exhausting all available assets and using up their lifetime savings before being able to qualify for Medicaid. Not surprisingly, a web search on “Medicaid estate planning” yields thousands of results offering advice on a variety of strategies to qualify for Medicaid while preserving assets and savings for heirs.
Federal guidance implies that states can recover when the surviving spouse dies, or a child’s protected status is lost, or when a protected relative moves out of the home. However, a number of states waive their future right to recovery altogether, others defer it, and yet others use a mix of approaches based on the specifics of each case.
It is up to each state to develop and disseminate information to help the public understand the rationale and necessity for Medicaid estate recovery, as well as the rights of both the State and the recipient. For this reason, considerable variation exists in the level of resources each state commits to this process. The state Medicaid agency must decide how to keep it understandable, while providing all the essential points, and how to accommodate the variety of individual circumstances. Decisions must also be made regarding what level of detail beneficiaries and their families can absorb or when is the best time to provide information about estate recovery — an event that may occur long after the application process. Even when a state provides comprehensive estate recovery information at the most suitable time, people may be overwhelmed by the complexity of the decisions they must make during the application process, which may take place over a fairly short and emotionally difficult period of time.
At a minimum, states must recover amounts spent by Medicaid for long-term care and related drug and hospital benefits, including Medicaid payments for Medicare cost sharing related to these services. However, they have the option of recovering the costs of all Medicaid services paid on the recipient’s behalf. The majority of states recover spending for more than the minimum of long-term care and related expenses.
Recoveries may only be made from the estates of deceased recipients who were 55 or older when they received Medicaid benefits or who, regardless of age, were permanently institutionalized. However, states may exempt recipients if their only Medicaid benefit is payment of Medicare cost sharing (i.e., Medicare Part B premiums).
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Inheritance advice, How to equally balance your estate
Estate PlanningHow would you split up an Inheritance to your loved ones?
When will you allow the person to have it?
Will they be old enough or mature enough to invest or do something worthy with your gift?.
The amount of questions are endless and with our experience and advise we can help.
Medicaid Myths
MedicaidThe overwhelming majority of nursing home residents receive Medicaid. That’s right! Over 70% of nursing home residents right now are getting Medicaid. What about the rest? They’ll be on Medicaid too… in 6-18 months! Think about it… can we all afford $7000-$9000 per month, every month? Most folks can’t and Medicaid is the solution!
FACT: You are allowed to keep several kinds of “exempt” assets, including your car, your family home and the stuff inside! Not to mention other items.
MYTH: If I gave anything away in the last 3 years (or 5 years or whatever the time limit is now), my spouse and I are disqualified.
FACT: Not so fast. Some assets can be transferred without penalty under certain circumstances. Find out which legal loopholes do you qualify for!
MYTH: There’s nothing we can do! Now that my spouse needs skilled nursing care, we may as well sign over our life savings, family cottage, homestead and give up!
FACT: There is NO reason for ANY married couple to be paying “private pay rates” for skilled nursing. Using LifePlan™ Crisis techniques, I’ve helped thousands of married couples save millions… almost all of their life savings… not just the small “protected amount”. I can do the same for you.
MYTH: As usual, married folks get all the breaks… I’m single so there’s nothing I can do… I’m the one who has to give up!
FACT: Different LifePlan™ Crisis techniques are available for single people. There is always something we can do to get you the care that you or your loved one needs – without losing your life savings!
MYTH: Today’s LifePlan™ Crisis techniques solve everything! We don’t have to do anything until it’s time for long term care!
FACT: Medicaid rules change all the time and they’re not getting any easier. As Medicaid gets more and more difficult we respond with more advanced Crisis LifePlanning™ strategies, but the best approach is to plan ahead and avoid the crisis altogether. Find our how at the next LifePlan™ Essentials Workshop… click on the button or call us and sign up!
MYTH: My spouse will qualify for Medicaid right away because our prenuptial agreement says that my stuff is mine!
FACT: Pre-nuptial agreements, post-nuptial agreements, and legal separations are all irrelevant for Medicaid purposes.
Tax laws that include death tax, gift tax while understanding laws
Estate PlanningThe estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.”
Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse. This election is made on a timely filed estate tax return for the decedent with a surviving spouse. Note that simplified valuation provisions apply for those estates without a filing requirement absent the portability election.
Power of Attorney, Both Medical and Financial
Tax LawsIf you become sick or disabled, either temporarily or permanently, who will make decisions for you?
A Power of Attorney allows you to appoint someone you trust to handle your affairs if you cannot do so. If you cannot pay bills, get records or make other decisions, your family will be prevented from helping you get treatment, pay doctors or pay for Medicaid.
Without a Power of Attorney, your family may have to file two (that’s right, 2!) actions in the Probate Court:
Guardianship
Guardianship action gives the winner the right to make medical care and life decisions for you.
Conservatorship
This one is about your money and your stuff. Who gets to control it? If you don’t decide, the Probate Court will be happy to do it for you!
These actions involve the Court, several lawyers and can cost between $4,000 up to as much as $50,000. Guardianship and Conservatorship also involves a lifetime of public reporting about you, your health status, and your money to the Probate Court. All of our families, as part of our LifePlanning™ process, receive both Financial (Durable) and Medical Powers of Attorney. It is important that you give your family the tools to help you, if you cannot help yourself.
Estate Planning Attorneys in Michigan
Don’t put your future at risk. Contact us today to get started on creating your estate plan.