Admission of a loved one into a care facility can be a shock emotionally and financially. Many Kentuckians are unprepared. They have not planed for the cost of care. In many cases, they are unsure of how to balance the need for care with the needs of a spouse still living at home.
There are some benefits, such as Veteran’s Aid and Attendance and Medicaid which can assist Kentuckians in paying for care. Both programs are means-tested benefits. That means an applicant’s income and assets will be evaluated to determine if they are eligible. If either is above the limit set by the program, benefits will not be approved. Additionally, any uncompensated transfers and gifts may result in a penalty period or even a denial of benefits.
When faced with this, many people spend their resources until they are below the asset threshold, then apply for benefits. This approach, while understandable, results in the loss of assets that did not have to be squandered.
Further, many people below the limits apply for, and receive Kentucky Medicaid benefits without understanding that receipt of the benefits is contingent upon a lien placed against their estate. The Commonwealth can, and often does, ask for repayment when the Medicaid recipient or their surviving spouse dies. This is called Estate Recovery. This can be a nasty shock for children and loved ones who expected to inherit a treasured childhood home or land that has been in the family for generations.
Together we can create a comprehensive plan to get you below the income and asset caps. I will advise you on how to make changes to the types of assets you own or their ownership structures in order to get below the thresholds and preserve the assets against dreaded Estate Recovery.
While maximum benefits are derived from planning long before you are likely to need institutional care, I can assist you if no planning has been completed prior to you or your loved on entering care. Dealing with excess assets at the time of application is crisis planning. While I can’t save every asset or income stream if planning occurs at that state, I can create a plan that saves as much as possible or as much as is beneficial to the applicant.
Medicaid Planning is complex. It requires a skilled, trained lawyer to accurately assess all relevant facts and client goals and then apply the law to determine the best outcome for a client. Nevertheless, clients frequently hesitate to hire an attorney because they fear the cost. In most cases, the cost is quite a bit more than traditional estate planning (i.e., a will, Power of Attorney, Health Care POA, and Living Will), but still less than the cost of one tow two months in a nursing home.
The cost for advising a client in long term care varies greatly. It is determined by a number of factors: whether it is a crisis case or whether we are planning ahead of time, the nature of your family situation, your current asset base and expected future changes, etc. Consequently, a firm statement of cost cannot be provided to you until we discuss your specific situation.
Please contact this office or a competent elder law attorney of your choice if you have any questions. Do not attempt to do this on your own as this area of law is complex and full of unseen dangers. Many intelligent, intellectually sophisticated laypersons have attempted to do so in the past and created problems that surface at a later date. Problems an attorney must unravel. Problems that cost time, money, and frustration.
Do not attempt to use a non-lawyer individual or financial or insurance firm selling trusts or annuities as they make their money if you buy a specific product that will qualify you for benefits. They don’t make their money off their advice, but off the products they sell. Further, if the individual or firm is not a lawyer, they are not qualified to give you legal advice and are doing so in contravention of VA policy and Kentucky law. Finally, such individuals and firms are concerned with qualifying you for benefits, not in protecting your assets from Estate Recovery. Most individuals want to preserve as much of their asset base as possible and pass it on to spouses and children. They do not want to receive benefits now at the expense of their surviving loved ones.
I am not selling you a product, but working with you to go through all your options and choose a plan that is best for you. We will be concerned with both qualifying for benefits and preserving your assets for your spouse and children. I will not attempt to sell you any specific product or force you into a plan that is not right for you.