Last week , the Club was fortunate to have RICHARD NEWMAN Esq. from the ROTHKOFF LAW GROUP, who gave us a very timely overview of elder care concerns and how to plan for the future. He centered his discussion on two aspects: How to protect your assets against the high cost of nursing home care; and the Probate rules surrounding steps needed to protect your assets.
On nursing home costs, he pointed out the costs can run between $15,000 to 17,000 per month in some places, and although Medicaid help is available in some cases, the eligibility rules are numerous and stringent. These rules can greatly affect your overall asset picture. He stated that most nursing homes in the area accept Medicaid assistance, even the 'very good' ones, so we should always be looking for these opportunities.
When checking on personal eligibility, there are ways to protect wealth, but spending down our savings, or giving it away to our kids, raises a lot of suspicion from Medicaid, and invites closer attention from them. There are limits to what annual income is allowed, and the total of one's 'countable assets' are detailed in their rules. These totals impact the amount of assistance that can be offered. Income can be derived from many sources, and is mostly counted towards your limits, but Richard pointed out that Medicaid Compliant Annuities are available as one hedge.
The rules for transferring assets before applying for assistance, are concise and enforced. There is a 5 year loopback into all financial transactions during the application process, and sudden reduction in asset totals are flagged immediately and a penalty applied. He noted that in Pa. ,kids are responsible for debts on indigent parents, so take care in moves to protect wealth, especially when it applies to real estate.
The message is that , visiting an Elder Care Attorney is a good way to protect your wealth when applying to nursing homes.
See the attached flyer with Michelle Koch's information. She is helping our district's clubs create their IMPACT Clubs. More will be mentioned during club visits. Get those brains thinking!
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