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Estate Planning

What is the Medicaid Estate Recovery Program?

By Estate Planning, Government Benefits, Medicaid Planning

If individuals receive Medicaid benefits during their lifetimes, Medicaid may have a claim against their estates for any amount spent on the recipient. This is called the Medicaid Estate Recovery program. The program, which operates on a state and federal level, is designed to recover the assistance payments from the assets in the estate.

Estate recovery applies to anyone who received government benefits and were age 55 years or older at the time of their death. The law requires that the personal representative or attorney of the estate send a copy of the death certificate to the Agency for Health Care Administration to determine whether Medicaid provided assistance. If so, a claim is then filed with the probate court.

The main targets of this program are nursing home residents who were also Medicaid recipients during their lifetime. If the Medicaid recipient leaves behind a spouse, a child under the age of 18, or a blind/disabled child, the estate recovery does not apply.

Bach & Jacobs, P.A. provides assistance to personal representatives and trustees who are responsible for administering estates and trusts. If you have been named as a personal representative or trustee for someone who has recently died, contact our firm for a consultation with one of our attorneys.

October 11, 2016
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Testamentary Trusts: The Basics

By Asset Protection Planning, Estate Planning

Unlike a living trust, a testamentary trust is provided for in a last will and testament, however its terms are established by an individual during their lifetime. The trust sets up the distribution of all or part of an estate and sometimes the proceeds from a life insurance policy held on the life of the person creating the trust.

While a testamentary trust can be provided for in a last will and testament, you can also direct that your living trust create one. Typically, a testamentary trust is created for children who are minors, loved ones with disabilities, or anyone who would receive a large sum of money outright.

Because testamentary trusts take legal effect after you die, they are considered irrevocable and cannot be changed. Testamentary trusts come into play at the end of the probate process after the person who created it has died.

The trustee who the settlor appoints will manage the funds in the trust until the beneficiary of the trust is in control.

If you are the trustee of a testamentary trust or you wish to create a testamentary trust as part of your last will and testament, contact Bach & Jacobs, P.A. to consult with one of our attorneys.

 

October 7, 2016
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Tips for Hiring an Elder Law Attorney

By Asset Protection Planning, Elder Law, Estate Planning

When choosing an elder law attorney, it is important to properly assess your circumstances and spend time reviewing attorneys in your area. At the end of the day, you want an elder law attorney who has the most legal knowledge and will act in your best interest.

Here are a few tips to assist you in hiring the attorney that will do the most for you:

  • A good first step is thoroughly researching attorneys and their qualifications; you can do this by asking trusted friends, asking the firm for their qualifications, and checking the Florida Bar’s website for disciplinary history
  • Make sure to sign a retainer agreement so you will have in writing what services the attorney will provide and what fees will be charged
  • Let the law office know what you are trying to accomplish at your appointment so the attorney will better understand your objectives

Babette Bach, Esq. is a Florida Board Certified Elder Lawyer. The attorneys at Bach & Jacobs, P.A. can assist you with a variety of elder law-related matters.

October 4, 2016
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What is an elder law attorney?

By Elder Law, Estate Planning, Guardianship, Medicaid Planning, Medicare, Probate, Tax Law

An elder law attorney, also known as an elder care attorney, is familiar with the state and federal laws that impact seniors and their well-being.

These attorneys are well-versed and specialize in a range of areas:

  • Estate planning
  • Powers of attorney
  • Medicaid
  • Medicare
  • Veterans benefits
  • Probate and trust administration
  • Nursing homes
  • Elder abuse and fraud

Elder law attorneys allow you to plan ahead. By meeting with an elder law attorney and setting up documents, you can protect your assets, properly pass your estate to heirs, and name individuals to make health care and financial decisions for you when you are unable.

If you have further questions or wish to set up documents, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

September 30, 2016
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Is it a good idea to have joint ownership of bank accounts?

By Asset Protection Planning, Estate Planning, Medicaid Planning

As you get older, you may find yourself needing assistance paying bills and managing finances. Oftentimes, seniors will add their children and loved ones as co-owners to bank accounts. It is important to know that there are advantages and disadvantages to having joint ownership of bank accounts.

A joint owner has complete access to your account and can make any withdrawals he or she wishes to make. The joint owner can make these withdrawals and write checks without your permission. While this may not cause any problems with a trusted person as your co-owner, it can lead to bad circumstances if the person is acting against your interest. It is also important to remember that your assets in the joint account are reachable by your co-owner’s creditors once their name is on the account.

A common misconception regarding Medicaid and jointly-owned accounts is that Medicaid will see the account as being owned in half by the applicant and half by the co-owner. However, the case is actually that Medicaid will view the account as belonging solely to the applicant. Thus, the Medicaid applicant has the job of proving otherwise.

Lastly, when you pass away, the remaining assets in the account will become the property of the co-owner, regardless of whether you want them passed along to that individual. While that is an easy and convenient method of transferring assets, it can problematic if you want them to be given to or shared with someone else.

When you consult with a Bach & Jacobs, P.A. attorney about your estate plan, they will analyze the titling of your assets and advise you whether joint titling is appropriate given your objectives and goals.

September 27, 2016
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Planning for a Spouse’s Death

By Asset Protection Planning, Estate Planning

The death of a spouse is a somber and challenging topic to discuss, however, it is crucial to do so in order to secure your finances and estate.

While you and your spouse may have already prepared documents such as powers of attorney and advance directives, there are several other areas of end-of-life planning for which you should discuss and prepare.

In the ever-changing digital world we live in, it is very important that both you and your spouse know the passwords and specifics to your online accounts and digital assets. Passwords can be easily lost and forgotten so make sure they are written down in a protected space. Not only should passwords be kept safe, but also account numbers, key contacts, and PIN numbers. It is also a good idea to keep important documents such as birth and marriage certificates, vehicle titles, life insurance policies, and mortgage documents in a safe and organized place.

Lastly, both spouses should be familiar and comfortable with your financial advisors and actual finances. Oftentimes, couples will delegate financial accounting to one partner who will do the taxes and be responsible for important financial information. While this may be a convenient system, it is leaving one spouse in the dark about their finances and assets. By sharing the responsibility of financial accounting, couples can properly prepare for end-of-life care and financial management.

September 16, 2016
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Florida Senate adopts several elder care bills

By Elder Law, Estate Planning, Government Benefits, Guardianship

Bill 0080 — Relating to Family Trust Companies

  • This bill revises the Family Trust Company Act to require that all family trust companies apply as a licensed family trust company, register as a foreign licensed family trust company, or stop doing business by December 30, 2016 in the state of Florida.
  • It also requires the family trust company to have at least three directors/managers, with at least one of those directors/managers being a resident of Florida.

Bill 0232 — Relating to Guardianship

  • The passing of this bill renames and expands the Statewide Public Guardianship Office to the Office of Public and Professional Guardians, giving it the responsibility of the administrative duty of writing the rules for the regulation of professional guardians.
  • The bill establishes stricter regulations of professional guardians, who previously have not been closely supervised by the state

Bill 0494 — Relating to Digital Assets

  • Dubbed the “Florida Fiduciary Access to Digital Assets Act,” this bill allows fiduciaries to manage and control digital assets the same way they manage tangible assets.
  • This bill also grants custodians of digital assets the right to interact with the fiduciaries in order to honor the fiduciaries’ requests
  • Lastly, Bill 0494 allows for courts to authorize a guardian the right to access the digital assets of a ward, if the circumstances permit

Bill 1335 — Relating to Long-term Care Managed Care Prioritization

  • This bill not only requires the Department of Elderly Affairs to keep a wait list for the enrollment for community-based services, but also requires the DEA to prioritize individuals through a frailty-based screening tool.

These bills took effect July 1, 2016.

August 12, 2016
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How To Choose a Funeral Plot

By Estate Planning

When choosing a funeral plot, it is important to plan ahead in order to prevent spouses and relatives from undue stress during times of grief. During periods of mourning and grief, it is challenging for loved ones to think clearly and make big decisions. By planning ahead, you can save your loved ones from stress and have more control over the process of choosing the cemetery.

Before deciding on a funeral plot, you should be thorough in researching the location, amenities, prices and reputation of the cemetery. It is also important to consider the two categories of cemeteries: private and public. At privately-owned cemeteries, it is state law that 10% of the purchase price goes to a trust fund for maintenance of the property monitored by the state.

Public cemeteries include cemeteries used by the community, neighborhood or church. For public cemeteries, check to make sure that the organization that manages it is fiscally sound. While the cemetery may currently seem to be in a good state, there are problems that it could experience in the future.

July 12, 2016
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How is the appointment of a health care surrogate part of an advance directive?

By Elder Law, Estate Planning, Medicaid Planning

It is important for everyone, young and old, to plan for both end-of-life care and unforeseen medical problems. There are certain documents you can prepare to appoint a trusted person to assist you with health care decisions if you are incapacitated.

 

Health Care Surrogate

A great first step in preparation for this is to designate a health care surrogate. A health care surrogate is an appointed individual who makes health care decisions for you when you become unable to make them yourself. This individual advises doctors and makes important medical decisions for you. Your living will and appointment of a health care surrogate are two documents that can guide your health care decision-making. A health care surrogate does not have any control of your finances unless indicated. Typically, you would designate a durable power of attorney to have access to your finances.

 

If you have further questions about this topic or setting up your estate and end-of-life documents, contact one of our experienced estate planning attorneys at (941) 906-1231.

July 8, 2016
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