Ralph Robbins
Certified Financial Planner
Ralph S. Robbins, CFP©, is a licensed Certified Financial Planning Practitioner and an Accredited VA Claims Agent specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.
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Question
I'm afraid my sister is trying to steal all of my mom’s money by being on joint accounts with her. What can I...
Hi NoVoice... I hope you don't mind that I answer the question you posited on my wall here so that it may be of benefit of others. I... Hi NoVoice...
I hope you don't mind that I answer the question you posited on my wall here so that it may be of benefit of others.
I will try to answer your question given what you stated.
A Will is only applicable to probate assets. Probate assets are those that are not governed by some other mechanism. So, for instance, if a life insurance policy has a named beneficiary other than "the estate of", then the proceeds will pass directly to the beneficiary and by-pass probate and the Will.
Similarly, if an IRA has a named beneficiary other than "the estate" it will pass directly to the beneficiary and by-pass probate and the Will.
There are methods to have virtually all assets by-pass probate if that is the intention. Most commonly used are the designation of beneficiaries as noted above, revocable living trusts, and joint tenancy.
When it comes to bank accounts, those held jointly will pass directly to the joint holder and thereby by-pass probate and NOT be subject to the terms of the Will.
If mom's intention is for assets at her death be subject to her Will then the proper way to establish bank accounts (or any other asset) where Power of Attorney is to be exercised is to have al accounts in Mom's name ONLY with the POA submitted to the bank or other institution so the POA can handle those accounts.
If the accounts are in Mom's name only and there is no "Payable on Death" or "Transfer on Death" beneficiary or if the account is NOT "In Trust For" then the proceeds will be subject to probate, and therefore, mom's will.
Hope this helps. see more
I hope you don't mind that I answer the question you posited on my wall here so that it may be of benefit of others.
I will try to answer your question given what you stated.
A Will is only applicable to probate assets. Probate assets are those that are not governed by some other mechanism. So, for instance, if a life insurance policy has a named beneficiary other than "the estate of", then the proceeds will pass directly to the beneficiary and by-pass probate and the Will.
Similarly, if an IRA has a named beneficiary other than "the estate" it will pass directly to the beneficiary and by-pass probate and the Will.
There are methods to have virtually all assets by-pass probate if that is the intention. Most commonly used are the designation of beneficiaries as noted above, revocable living trusts, and joint tenancy.
When it comes to bank accounts, those held jointly will pass directly to the joint holder and thereby by-pass probate and NOT be subject to the terms of the Will.
If mom's intention is for assets at her death be subject to her Will then the proper way to establish bank accounts (or any other asset) where Power of Attorney is to be exercised is to have al accounts in Mom's name ONLY with the POA submitted to the bank or other institution so the POA can handle those accounts.
If the accounts are in Mom's name only and there is no "Payable on Death" or "Transfer on Death" beneficiary or if the account is NOT "In Trust For" then the proceeds will be subject to probate, and therefore, mom's will.
Hope this helps. see more
Question
How do we tell my 85-year-old mother that her kids are taking over her finances?
I suspect that since it has got to this point that you have already had a conversation with her regarding her spending and it has not... I suspect that since it has got to this point that you have already had a conversation with her regarding her spending and it has not influenced her behavior.
I also suspect that she will not react well if you just "take" her checkbook and assume financial responsibility.
I have two suggestions:
Since she will not budget herself you could tell her that service companies (electric, phone, utilities, anything else where it will work) are asking customers to go on "automatic bill pay". Have her accounts set up this way so payments are automatically deducted from her checking account. This will allow her to see what she has left after the necessities have been handled...kind of an "imposed budget".
If that does not work, and since you have POA, you will have to take matters into your own hands more aggressively. Get a letter from mom and dad's physician(s) attesting to their inability to handle their financial affairs. This way mom cannot go to the banks and say "my kids have no authority...."
Since mom does have access to her current accounts you will then set up new accounts so you have the checkbook and she does not have access.
If you go the latter route it will obviously cause a rift. Beyond "this is for your safety and well being" I have no idea how you will handle the repercussions...
Good luck! see more
I also suspect that she will not react well if you just "take" her checkbook and assume financial responsibility.
I have two suggestions:
Since she will not budget herself you could tell her that service companies (electric, phone, utilities, anything else where it will work) are asking customers to go on "automatic bill pay". Have her accounts set up this way so payments are automatically deducted from her checking account. This will allow her to see what she has left after the necessities have been handled...kind of an "imposed budget".
If that does not work, and since you have POA, you will have to take matters into your own hands more aggressively. Get a letter from mom and dad's physician(s) attesting to their inability to handle their financial affairs. This way mom cannot go to the banks and say "my kids have no authority...."
Since mom does have access to her current accounts you will then set up new accounts so you have the checkbook and she does not have access.
If you go the latter route it will obviously cause a rift. Beyond "this is for your safety and well being" I have no idea how you will handle the repercussions...
Good luck! see more
Question
Who should I go to for an Irrevocable Funeral Trust?
That should be fine. Technically there is no limit although some states do set arbitrary limits of around $12,500 and some may combine all... That should be fine. Technically there is no limit although some states do set arbitrary limits of around $12,500 and some may combine all funeral benefits to account for that limit (e.g., the "Burial Account" mentioned above).
If you are working with an insurance agent he or she should be able to give you the specifics for the state in which the applicant resides. see more
If you are working with an insurance agent he or she should be able to give you the specifics for the state in which the applicant resides. see more
Question
Who should I go to for an Irrevocable Funeral Trust?
There are two primary ways to "pre-fund" funeral costs prior to public benefit application: Pay cash in advance or purchase life... There are two primary ways to "pre-fund" funeral costs prior to public benefit application:
Pay cash in advance or purchase life insurance to fund services.
The reason an Irrevocable Trust is used in either instance is that the value of the purchase may be considered a countable asset (particularly life insurance cash values above a certain amount).
You may arrange for this through all three of the above (elder law attorneys will generally refer out unless they are insurance licensed and offer an insurance product).
I generally recommend that my clients go to the funeral home of their choice. In almost all instances, if this not the home that is eventually used, benefits will be transferable.
Many funeral homes offer prepaid services or insurance funded plans.
They will be able to make the arrangements "irrevocable".
Note that in virtually all states it is also possible to fund a "burial account" in addition to the irrevocable funeral trust.
This should be established as a bank account titled "John Doe Burial Account" owned by the applicant. The account should have a POA and a named beneficiary (Payable on Death or Transfer on Death).
The maximum amount that can be held in the account is $2,500. This is in addition to the $2,000 asset limitation for Medicaid applicants. see more
Pay cash in advance or purchase life insurance to fund services.
The reason an Irrevocable Trust is used in either instance is that the value of the purchase may be considered a countable asset (particularly life insurance cash values above a certain amount).
You may arrange for this through all three of the above (elder law attorneys will generally refer out unless they are insurance licensed and offer an insurance product).
I generally recommend that my clients go to the funeral home of their choice. In almost all instances, if this not the home that is eventually used, benefits will be transferable.
Many funeral homes offer prepaid services or insurance funded plans.
They will be able to make the arrangements "irrevocable".
Note that in virtually all states it is also possible to fund a "burial account" in addition to the irrevocable funeral trust.
This should be established as a bank account titled "John Doe Burial Account" owned by the applicant. The account should have a POA and a named beneficiary (Payable on Death or Transfer on Death).
The maximum amount that can be held in the account is $2,500. This is in addition to the $2,000 asset limitation for Medicaid applicants. see more
Question
Question
How can I find the appropriate and affordable living facility for my mother?
Westchester County is going to be expensive! Apples to Apples (for instance Sunrise Senior Living Emeritus, Vi, Five Star, etc.). much... Westchester County is going to be expensive! Apples to Apples (for instance Sunrise Senior Living Emeritus, Vi, Five Star, etc.). much cheaper in Florida. I'm not sure about NY, but in Florida we have 6-12 bed "adult family homes" that are licensed as ALF's and offer much more personal care and attention than the hotel-like corporate establishments. If mom were in such a venue, would your sister still be so burned out?
If mom (or the family) has the bread, by all means move her north (brrrrrr!). But remaining in FL might work if the sis is relieved of the burden of day-to-day. see more
If mom (or the family) has the bread, by all means move her north (brrrrrr!). But remaining in FL might work if the sis is relieved of the burden of day-to-day. see more
Question
How does Medicaid Estate Recovery work when the surviving spouse owned the home jointly?
You are welcome. Yes...that's basically it. Note, too, they are only speaking of "probate assets". What if assets are held... You are welcome.
Yes...that's basically it.
Note, too, they are only speaking of "probate assets". What if assets are held in a living trust or you own a brokerage account or an IRA or a bank account with a named beneficiary? In most states these assets are not subject to probate and, ergo, not subject to Medicaid recovery.
This is not true in other states such as NJ where almost all assets, regardless of how they are titled, ARE subject to probate. I wonder what the case is in MN? Maybe attending a free estate planning seminar offered by an attorney where you can ask this question would be worthwhile. Or, you could try looking it up on the net! ;-) see more
Yes...that's basically it.
Note, too, they are only speaking of "probate assets". What if assets are held in a living trust or you own a brokerage account or an IRA or a bank account with a named beneficiary? In most states these assets are not subject to probate and, ergo, not subject to Medicaid recovery.
This is not true in other states such as NJ where almost all assets, regardless of how they are titled, ARE subject to probate. I wonder what the case is in MN? Maybe attending a free estate planning seminar offered by an attorney where you can ask this question would be worthwhile. Or, you could try looking it up on the net! ;-) see more
Question
How does Medicaid Estate Recovery work when the surviving spouse owned the home jointly?
It literally took me less than a minute to find this. http://www.dhs.state.mn.us/main/groups/publications/documents/pub/dhs16_151505.pdf... It literally took me less than a minute to find this.
http://www.dhs.state.mn.us/main/groups/publications/documents/pub/dhs16_151505.pdf
Hope it helps! see more
http://www.dhs.state.mn.us/main/groups/publications/documents/pub/dhs16_151505.pdf
Hope it helps! see more
Question
If mom lives with us, can part of her Social Security check be used to pay some bills?
No problemo with respect to her Social Security income. Nobody cares. No need to document anything unless you have an unruly relative that... No problemo with respect to her Social Security income. Nobody cares. No need to document anything unless you have an unruly relative that may accuse you of elder abuse.
Lilliput offers some sound advice, however, with respect to the need for public benefits in the future (depending on the amount in question).
Also, if she was married to a veteran when he died she may also be eligible for VA Pension when her care starts to become expensive (I know it sounds strange, but it is true, search "Aid and Attendance Pension" on this site) see more
Lilliput offers some sound advice, however, with respect to the need for public benefits in the future (depending on the amount in question).
Also, if she was married to a veteran when he died she may also be eligible for VA Pension when her care starts to become expensive (I know it sounds strange, but it is true, search "Aid and Attendance Pension" on this site) see more
Question
Are we at risk of losing Medicare if my dad was released from rehab and we do not provide him with the full-ti...
N1k2R3: I'm so glad you didn't get taken in by that annuity nonsense. Unfortunately the CFP Board allows CFP's to sell... N1k2R3:
I'm so glad you didn't get taken in by that annuity nonsense. Unfortunately the CFP Board allows CFP's to sell commissioned products...however commissions must be disclosed. I'm curious, where you told that the agent would make between 4 and 12% commission if he/she sold you that annuity?
General rule for all investing: If it sounds to good to be true, it surely is. In your case you were being offered the equivalent of a 7.2% interest. I'm sure you were told the annuity was a "safe" investment. So let's look at the interest rate on what used to be the safest investment on the planet.
As of today, 8/2/11 the interest rate on a 30 year US Treasury is 4.07%. So you were being offered an interest rate 43% higher than a 30 year Treasury.
On top of that they were promising you a 10% "bonus"...they were going to add $10,000 to your $100,000. Sure beats a toaster!!
And on top of that, the agent was going to earn between 4% and 10% of the $100,000.
Does this seem like a viable business deal to you? Of course not! Good for you for stepping away. Have patience. Interest rates will soon be soaring, unfortunately, so will inflation.
By the way...no offense taken. see more
I'm so glad you didn't get taken in by that annuity nonsense. Unfortunately the CFP Board allows CFP's to sell commissioned products...however commissions must be disclosed. I'm curious, where you told that the agent would make between 4 and 12% commission if he/she sold you that annuity?
General rule for all investing: If it sounds to good to be true, it surely is. In your case you were being offered the equivalent of a 7.2% interest. I'm sure you were told the annuity was a "safe" investment. So let's look at the interest rate on what used to be the safest investment on the planet.
As of today, 8/2/11 the interest rate on a 30 year US Treasury is 4.07%. So you were being offered an interest rate 43% higher than a 30 year Treasury.
On top of that they were promising you a 10% "bonus"...they were going to add $10,000 to your $100,000. Sure beats a toaster!!
And on top of that, the agent was going to earn between 4% and 10% of the $100,000.
Does this seem like a viable business deal to you? Of course not! Good for you for stepping away. Have patience. Interest rates will soon be soaring, unfortunately, so will inflation.
By the way...no offense taken. see more
Question
Are we at risk of losing Medicare if my dad was released from rehab and we do not provide him with the full-ti...
The Medicare/Medicaid/private insurer situation depends to some degree on whether the applicant is under or over age 65 and what services... The Medicare/Medicaid/private insurer situation depends to some degree on whether the applicant is under or over age 65 and what services are being applied for.
Those under 65 applying for Medicaid who are disabled must wait two years after disability determination to qualify for Medicare. They may be covered by Medicaid alone in the interim but once eligible for Medicare, Medicare will be primary.
Those under 65 who are NOT disabled will not be eligible for Medicare until they are 65 but still may qualify for Medicaid.
Those over the age of 65 do not need to be determined "disabled". Most will already have Medicare in place and as I stated earlier, Medicare is primary.
It is possible to have private insurance AND both Medicare and Medicaid.
Example: For those over the age of 65 Medicare will be primary. Most also have a Medicare Supplement from a private insurer which will be secondary. Medicaid will then be tertiary. For those over 65 receiving Medicaid and NOT in a nursing home I always recommend a that a Medicare supplement insurance plan be in place (not an HMO or "Medicare Advantage Plan" by the way). see more
Those under 65 applying for Medicaid who are disabled must wait two years after disability determination to qualify for Medicare. They may be covered by Medicaid alone in the interim but once eligible for Medicare, Medicare will be primary.
Those under 65 who are NOT disabled will not be eligible for Medicare until they are 65 but still may qualify for Medicaid.
Those over the age of 65 do not need to be determined "disabled". Most will already have Medicare in place and as I stated earlier, Medicare is primary.
It is possible to have private insurance AND both Medicare and Medicaid.
Example: For those over the age of 65 Medicare will be primary. Most also have a Medicare Supplement from a private insurer which will be secondary. Medicaid will then be tertiary. For those over 65 receiving Medicaid and NOT in a nursing home I always recommend a that a Medicare supplement insurance plan be in place (not an HMO or "Medicare Advantage Plan" by the way). see more
Question
Are we at risk of losing Medicare if my dad was released from rehab and we do not provide him with the full-ti...
In fact it is safe to say that virtually everyone over the age of 65 who is receiving Medicaid is also receiving Medicare. They are known... In fact it is safe to say that virtually everyone over the age of 65 who is receiving Medicaid is also receiving Medicare. They are known as "dual eligibles" whereby Medicare is their is their primary "insurer" and Medicaid is secondary. see more
Question
If I have a joint bank account with my mother can I move her funds to a new account in my name in case she mov...
Well you already made one mistake so let's see if we can assist you in avoiding another. The simple rule when it comes to planning for... Well you already made one mistake so let's see if we can assist you in avoiding another.
The simple rule when it comes to planning for Medicaid benefits is:
NO GIFTING.
The quick claim deed represents an uncompensated transfer and therefore, a gift.
As stated above, if you now apply for benefits, or do so within 5 years, a penalty based on the value of the transfer will be imposed.
So, with respect to mom's bank accounts, DO NOT transfer them to an account in your name only.
When and if you are ready to apply for benefits there are tools and techniques that can be implemented to preserve her assets for her benefit while she is receiving public benefits (note I said benefit the elder, not the adult child...I'm not implying anything here, just stating a point of fact because many, as I do, object to planning that simply let's the kids abscond with cash while we all pay for mom's care).
These techniques are not subject to a 5 year look back and so do not have to implemented until you are contemplating benefit application.
Now here is some good news, the mistake you made with respect to the house can be cured by quite claiming the property back to her in her name only.
Understand that in almost all states the homestead property is not a countable asset when applying for Medicaid nursing home benefits as long as mom states an "intent to return" to the home.
If your plan is to keep mom home for the duration, then, too, the property will remain a non-countable asset.
All you will have to worry about, if she receives Medicaid home and community based services, is Medicaid Estate Recovery (the state can lay claim to the exempt home property at her demise).
Again, depending on the state you live in, there are options to avoid this as well.
Important: Are you sure you have a valid Durable Power of Attorney and Health Care Surrogate document in place?
P.S. Medicaid compliant immediate annuities are a bad deal for nursing home residents as all income goes to the facility. If care is being received at home or in an ALF they can, at times, be beneficial. This is rarely the case for an individual. Where there is a community spouse, this strategy can make more sense. see more
The simple rule when it comes to planning for Medicaid benefits is:
NO GIFTING.
The quick claim deed represents an uncompensated transfer and therefore, a gift.
As stated above, if you now apply for benefits, or do so within 5 years, a penalty based on the value of the transfer will be imposed.
So, with respect to mom's bank accounts, DO NOT transfer them to an account in your name only.
When and if you are ready to apply for benefits there are tools and techniques that can be implemented to preserve her assets for her benefit while she is receiving public benefits (note I said benefit the elder, not the adult child...I'm not implying anything here, just stating a point of fact because many, as I do, object to planning that simply let's the kids abscond with cash while we all pay for mom's care).
These techniques are not subject to a 5 year look back and so do not have to implemented until you are contemplating benefit application.
Now here is some good news, the mistake you made with respect to the house can be cured by quite claiming the property back to her in her name only.
Understand that in almost all states the homestead property is not a countable asset when applying for Medicaid nursing home benefits as long as mom states an "intent to return" to the home.
If your plan is to keep mom home for the duration, then, too, the property will remain a non-countable asset.
All you will have to worry about, if she receives Medicaid home and community based services, is Medicaid Estate Recovery (the state can lay claim to the exempt home property at her demise).
Again, depending on the state you live in, there are options to avoid this as well.
Important: Are you sure you have a valid Durable Power of Attorney and Health Care Surrogate document in place?
P.S. Medicaid compliant immediate annuities are a bad deal for nursing home residents as all income goes to the facility. If care is being received at home or in an ALF they can, at times, be beneficial. This is rarely the case for an individual. Where there is a community spouse, this strategy can make more sense. see more
Question
Mom passed and I'm now my father with Alzheimer's POA. How can I protect his estate and house?
Let's take it easy here for moment. I appreciate the advice to seek an attorney's input put let's face it, lawyers are... Let's take it easy here for moment. I appreciate the advice to seek an attorney's input put let's face it, lawyers are expensive.
So before we go running for counsel, why not read the documents first? Unfortunately, your questions is quite confusing.
Is there a living trust in place currently or are you looking to create one to avoid probate? (Keep in mind that in some states real property is not permitted in a living trust).
How is the house deeded now?
Are you saying that she was sole owner and passed away as sole owner?
If that is the case it is too late to do anything. If there is no joint tenancy on the deed or if the deed is not titled to a living trust in a state where such an arrangement will indeed avoid probate, then it will pass via her will and be subject to probate.
There really should not been any tax consequences unless she was a multimillionaire and therefore subject to Estate and Gift tax.
Real property is subject to capital gains taxes, not income tax, and the beneficiary will actually receive a "step up" in cost basis to the current value of the property. This means first, there is no capital gain tax due when the property passes, and second, that when the beneficiary sells the property, they will only pay capital gain tax on the difference between the selling price and the value at mother's death.
If Dad is inheriting the property then any planning should be done in conjunction with my thoughts below.
If you are concerned about Dad's estate, and again taxes will only be an issue if he is a multimillionaire subject to Estate and Gift Tax, then read your POA carefully to see if it gives you the power to create trusts. If it does, then yes you can create a living trust.
The question I would ask is why do you want to do this?
A living (revocable) trust does not offer any protection against income tax, capital gain tax, or Estate and Gift Tax. Because the trust is "revocable", the grantor, here presumably Dad, is considered to have retained full control of the assets titled in the trust and therefore all taxes due continue to accrue to him personally.
If Dad has Alzheimer's his care is going to get very expensive. If the plan is to pay privately for the duration of his care then you have the power to handle his financial affairs and that is all you need.
If you plan on seeking public benefits to assist with the cost of his care, either now or in the future, then you may want to implement some immediate strategies or at least pre-plan so that his funds will be available to augment public benefits.
Here again, lawyers can be great, but expensive, resources.
Look around in your are for non-insurance agent, fee for service Medicaid planners who will charge you a very reasonable fee for consultation.
It is not very often that one actually needs an attorney, and the resulting, expense, to have this work done well.
Now wasn't that less expensive then running to a lawyer??? see more
So before we go running for counsel, why not read the documents first? Unfortunately, your questions is quite confusing.
Is there a living trust in place currently or are you looking to create one to avoid probate? (Keep in mind that in some states real property is not permitted in a living trust).
How is the house deeded now?
Are you saying that she was sole owner and passed away as sole owner?
If that is the case it is too late to do anything. If there is no joint tenancy on the deed or if the deed is not titled to a living trust in a state where such an arrangement will indeed avoid probate, then it will pass via her will and be subject to probate.
There really should not been any tax consequences unless she was a multimillionaire and therefore subject to Estate and Gift tax.
Real property is subject to capital gains taxes, not income tax, and the beneficiary will actually receive a "step up" in cost basis to the current value of the property. This means first, there is no capital gain tax due when the property passes, and second, that when the beneficiary sells the property, they will only pay capital gain tax on the difference between the selling price and the value at mother's death.
If Dad is inheriting the property then any planning should be done in conjunction with my thoughts below.
If you are concerned about Dad's estate, and again taxes will only be an issue if he is a multimillionaire subject to Estate and Gift Tax, then read your POA carefully to see if it gives you the power to create trusts. If it does, then yes you can create a living trust.
The question I would ask is why do you want to do this?
A living (revocable) trust does not offer any protection against income tax, capital gain tax, or Estate and Gift Tax. Because the trust is "revocable", the grantor, here presumably Dad, is considered to have retained full control of the assets titled in the trust and therefore all taxes due continue to accrue to him personally.
If Dad has Alzheimer's his care is going to get very expensive. If the plan is to pay privately for the duration of his care then you have the power to handle his financial affairs and that is all you need.
If you plan on seeking public benefits to assist with the cost of his care, either now or in the future, then you may want to implement some immediate strategies or at least pre-plan so that his funds will be available to augment public benefits.
Here again, lawyers can be great, but expensive, resources.
Look around in your are for non-insurance agent, fee for service Medicaid planners who will charge you a very reasonable fee for consultation.
It is not very often that one actually needs an attorney, and the resulting, expense, to have this work done well.
Now wasn't that less expensive then running to a lawyer??? see more
Question
Are we at risk of losing Medicare if my dad was released from rehab and we do not provide him with the full-ti...
Evelyn is right that one must be careful if seeking assistance to apply for VA Pension programs. However, I would take exception to the... Evelyn is right that one must be careful if seeking assistance to apply for VA Pension programs. However, I would take exception to the term "financial planners" being used in the broad sense.
The fact is that most who are offering "free" services in the private sector are insurance agents who are seeking to sell high commission annuities. This is problematic on two fronts.
First, there is an automatic conflict of interest when a person offering services is compensated solely by the sale of a product.
Second, the fact is that most who need this benefit have absolutely no use for an annuity and, the purchase of same, can cause serious problems if the elder is seeking Medicaid benefits simultaneously or at a later date.
I would avoid insurance agents offering to assist with this type of planning as most simply have no idea what they are doing. I spend a lot of time undoing these mistakes and it is very, very costly to the client.
Anyone can call themselves a "financial planner".
However, to earn the Certified Financial Planner (R) designation one must go through rigorous examination, scrutiny, and continuing education.
Moreover, CFP's are required to act in a fiduciary capacity with respect to their client's affairs. This is the highest standard of conduct proffered by statute and a responsibility that no one in the profession takes lightly.
Although I am a Certified Financial Planner (R), I do not sell financial products, I do not invest client money, and I earn no commissions. My services are offered on a flat fee basis.
There are many non-lawyer planners who operate the same way and do an excellent job assisting families with these complex matters.
Naturally, such advice should only be sought if needed. If assets and income pose no problem with benefit approval for either Medicaid, VA, or both, then certainly take Evelyn's advice above.
What is unique about the VA in particular is that their stated mission is to assist veterans in receiving claims, not denying claims. My experience has demonstrated to me that this is true and the VA does a great job at every level. see more
The fact is that most who are offering "free" services in the private sector are insurance agents who are seeking to sell high commission annuities. This is problematic on two fronts.
First, there is an automatic conflict of interest when a person offering services is compensated solely by the sale of a product.
Second, the fact is that most who need this benefit have absolutely no use for an annuity and, the purchase of same, can cause serious problems if the elder is seeking Medicaid benefits simultaneously or at a later date.
I would avoid insurance agents offering to assist with this type of planning as most simply have no idea what they are doing. I spend a lot of time undoing these mistakes and it is very, very costly to the client.
Anyone can call themselves a "financial planner".
However, to earn the Certified Financial Planner (R) designation one must go through rigorous examination, scrutiny, and continuing education.
Moreover, CFP's are required to act in a fiduciary capacity with respect to their client's affairs. This is the highest standard of conduct proffered by statute and a responsibility that no one in the profession takes lightly.
Although I am a Certified Financial Planner (R), I do not sell financial products, I do not invest client money, and I earn no commissions. My services are offered on a flat fee basis.
There are many non-lawyer planners who operate the same way and do an excellent job assisting families with these complex matters.
Naturally, such advice should only be sought if needed. If assets and income pose no problem with benefit approval for either Medicaid, VA, or both, then certainly take Evelyn's advice above.
What is unique about the VA in particular is that their stated mission is to assist veterans in receiving claims, not denying claims. My experience has demonstrated to me that this is true and the VA does a great job at every level. see more
Question
Are we at risk of losing Medicare if my dad was released from rehab and we do not provide him with the full-ti...
No, Medicare coverage will not be "lost". Hospitals and Skilled Nursing Facilities are under new Medicare guidelines with respect... No, Medicare coverage will not be "lost".
Hospitals and Skilled Nursing Facilities are under new Medicare guidelines with respect to discharge in an attempt to reduce "recidivism". This includes specified recommendations and followup. He may not be discharged if the conditions recommended are not in place.
As suggested above, if the recommendation is that Dad should be supervised 24/7, that is what should be provided. If such care is unaffordable or not practical at home, then a long-term nursing home placement should be considered until such time as he has recovered sufficiently to be safe at home.
Of course this may never occur (full recovery), and at 90 and 93, an alternative to home may be the best bet, i.e., assisted living.
Presuming this is NOT affordable, consider assisted living expenses versus all of the expenses maintaining them at home (taxes, insurance, food, transportation, utilities, etc.).
Between their combined income, Medicaid community benefits that may be available (what state do they live in?), and possible Veteran benefits if Dad was a vet, you may indeed find assisted living a viable alternative.
Check out:
Medicaid home and community benefits.
Veteran benefits.
If you can be more specific with respect to their financial and medical situation (and disclose what state they are in), I can be more specific as well. see more
Hospitals and Skilled Nursing Facilities are under new Medicare guidelines with respect to discharge in an attempt to reduce "recidivism". This includes specified recommendations and followup. He may not be discharged if the conditions recommended are not in place.
As suggested above, if the recommendation is that Dad should be supervised 24/7, that is what should be provided. If such care is unaffordable or not practical at home, then a long-term nursing home placement should be considered until such time as he has recovered sufficiently to be safe at home.
Of course this may never occur (full recovery), and at 90 and 93, an alternative to home may be the best bet, i.e., assisted living.
Presuming this is NOT affordable, consider assisted living expenses versus all of the expenses maintaining them at home (taxes, insurance, food, transportation, utilities, etc.).
Between their combined income, Medicaid community benefits that may be available (what state do they live in?), and possible Veteran benefits if Dad was a vet, you may indeed find assisted living a viable alternative.
Check out:
Medicaid home and community benefits.
Veteran benefits.
If you can be more specific with respect to their financial and medical situation (and disclose what state they are in), I can be more specific as well. see more
Question
My father-in-law has Alzheimer’s and dementia has not decided on a guardian. How do we get him to set up guard...
It is correct that a mere diagnosis of Alzheimer's/Dementia is not an automatic determinant as to "cognitive capacity". It... It is correct that a mere diagnosis of Alzheimer's/Dementia is not an automatic determinant as to "cognitive capacity". It is also true that a diagnosis (and especially if the elder is already in a nursing home) can be grounds for challenging the appointment of a POA.
Before you start running to lawyers to establish guardianship, let's figure talk about why you need a POA.
A Durable Power of Attorney will permit you to handle financial and contractual matters only.
Health care matters you already have proxy for and that is really important given your FIL's situation.
But, if has already signed for financial responsibility for the nursing home, and if you have joint ownership of any remaining assets, a POA may not be so important if all other financial moves have already been made (property ownership, insurance policies, etc.).
Your sister wants to move him to TN. That sounds like a health care decision, not a financial or contractual decision.
I would simply let him know that you already have the power to assist him with health care decisions and it will be foolish not to allow you to help with financial matters. Explain once more that if he does not do this voluntarily at some point the State will be asked to appoint a guardian for him and it may not be you!.
Will he prefer a stranger handling his affairs?
If he doesn't budge, well then so be it. At some point he will indeed become so incompetent that the nursing home or social services will have to apply for guardianship. Let them do it. Then the fees will not be yours to pay. see more
Before you start running to lawyers to establish guardianship, let's figure talk about why you need a POA.
A Durable Power of Attorney will permit you to handle financial and contractual matters only.
Health care matters you already have proxy for and that is really important given your FIL's situation.
But, if has already signed for financial responsibility for the nursing home, and if you have joint ownership of any remaining assets, a POA may not be so important if all other financial moves have already been made (property ownership, insurance policies, etc.).
Your sister wants to move him to TN. That sounds like a health care decision, not a financial or contractual decision.
I would simply let him know that you already have the power to assist him with health care decisions and it will be foolish not to allow you to help with financial matters. Explain once more that if he does not do this voluntarily at some point the State will be asked to appoint a guardian for him and it may not be you!.
Will he prefer a stranger handling his affairs?
If he doesn't budge, well then so be it. At some point he will indeed become so incompetent that the nursing home or social services will have to apply for guardianship. Let them do it. Then the fees will not be yours to pay. see more
Question
Does paying $400 a week count toward "spending down" for Medicaid qualifications for an Alzheimer's patient wi...
If dad died in Vietnam you must first distinguish as to whether mom is receiving "Compensation" or "Pension" You... If dad died in Vietnam you must first distinguish as to whether mom is receiving "Compensation" or "Pension" You stated pension (I am also assuming dad was not career military) so I'm going to go with that.
The answer will depend to some extent on what state mom resides in and what Medicaid services you are applying for (Home and Community Based Services -"HCBS" or Institutional).
Basically, you need to know this:
There are three levels of pension; basic (the lowest), housebound, and aid and attendance. In most states only the "basic" benefit is counted as income for Medicaid eligibility purposes because the balance is presumably going to "cost of care".
Except for allowance for personal care expenses, or in the case of HCBS an amount stipulated by the state, all income will be going to cost of care in any event.
The problem, therefore, will be with respect to the net VA pension income that will be countable for Medicaid eligibility purposes. If, after determining this amount, mom is still over your state's income cap ($2,022 per month in most states) the problem is easily cured by a provision in Federal Law in OBRA '93.
The provision provides for the establishment of what is known as a "Qualified Irrevocable Income Trust" (QIT) otherwise referred to as a "Miller Trust" or simply "Income Trust". The trust allows income over the income cap to be diverted away from the applicant for qualification purposes. The excess income is placed in the trust each month and in the same month is distributed towards the applicant's cost of care.
Some states provide QIT's through their Medicaid offices (e.g., Texas). Others, like my state of Florida, do not and attorneys will charge up to $1,800 to provide this document...which should, in my opinion, be a crime. see more
The answer will depend to some extent on what state mom resides in and what Medicaid services you are applying for (Home and Community Based Services -"HCBS" or Institutional).
Basically, you need to know this:
There are three levels of pension; basic (the lowest), housebound, and aid and attendance. In most states only the "basic" benefit is counted as income for Medicaid eligibility purposes because the balance is presumably going to "cost of care".
Except for allowance for personal care expenses, or in the case of HCBS an amount stipulated by the state, all income will be going to cost of care in any event.
The problem, therefore, will be with respect to the net VA pension income that will be countable for Medicaid eligibility purposes. If, after determining this amount, mom is still over your state's income cap ($2,022 per month in most states) the problem is easily cured by a provision in Federal Law in OBRA '93.
The provision provides for the establishment of what is known as a "Qualified Irrevocable Income Trust" (QIT) otherwise referred to as a "Miller Trust" or simply "Income Trust". The trust allows income over the income cap to be diverted away from the applicant for qualification purposes. The excess income is placed in the trust each month and in the same month is distributed towards the applicant's cost of care.
Some states provide QIT's through their Medicaid offices (e.g., Texas). Others, like my state of Florida, do not and attorneys will charge up to $1,800 to provide this document...which should, in my opinion, be a crime. see more
Question
Short-term care covered by Medicare has ended and Medicaid hasn't been approved, but my father still needs Ski...
If does not receive a VA Aid and Attendance Improved Pension Award with 90 business days from the date of application there is something... If does not receive a VA Aid and Attendance Improved Pension Award with 90 business days from the date of application there is something wrong with the application. If information is not provided on the proper form, in the proper form and without corroborating evidence undue delays will occur. It takes paperwork thirty days to cycle through the system, so each time the VA has a question or additional information is required, you are looking at another 60 day delay. My experience has been (with the Philadelphia center, anyway) that properly completed and documented applications are processed within 30 to 72 business days. The VA actually does a heck of a job if you give them what they need to do it! see more
If elderly parent has joint account only with one child, will other children be disinherited from those accoun...