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Medicaid Planning

What is a Pooled Trust?

By Asset Protection Planning, Government Benefits, Medicaid Planning

A first-party supplemental needs trust is created to allow disabled persons to receive the benefit of their funds in a trust while still qualifying for and receiving government benefits. An alternative to this trust is a pooled trust. A pooled trust is created by a non-profit organization, and individual beneficiaries can create accounts within the trust.

By pooling the assets of disabled persons, the organization can manage one master trust and maximize the benefits for the beneficiaries. The non-profit can make more stable investments and provide more services than a normal supplemental needs trust.

Most people with special needs join a pooled trust when they do not have anyone to create a first-party supplemental needs trust for them. And just like a first-party supplemental needs trust, a pooled trust is used for people to qualify for and remain eligible to receive government benefits, such as Medicaid and SSI.

A couple advantages of a pooled trust are the low costs and the fact that the funds will be used to help others with disabilities.

If you have further questions on this topic, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

April 14, 2017
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Big Improvements Coming To Florida’s Medicaid Long-Term Care Program

By Long-Term Care, Medicaid Planning

I’m thrilled to report a landmark settlement which will improve the quality and quantity of home care services for Medicaid enrollees receiving home and community based services. Congratulations to attorney Nancy Wright of Gainesville, Florida (lead Counsel), Disability Rights Florida and Southern Legal Counsel.

Under the Settlement Agreement, health plans that administer Medicaid long-term care services will be “required to provide an array of home and community-based services that enable enrollees to live in the community and to avoid institutionalization”.

The Settlement Agreement also states, among other things, that AHCA will:

  • Adopt rules that set out requirements for coverage of long-term care services
  • Require a new assessment procedure that takes into account the availability, willingness and ability of voluntary caregivers.
  • Amend their contract with health plans to ensure compliance with these rules
  • Require changes to health plan member handbooks to clarify enrollee rights and how to file consumer complaints
  • Train (or re-train) health plans, hearing officers, AHCA staff and others on the new requirements
  • Monitor case managers on how assessments are being done
  • Use enrollee surveys that ask about sufficiency of services

The agreement impacts all six health plans now operating in Florida to provide Medicaid services through the Long-Term Care Program: Coventry/Aetna, Humana, Sunshine Health, Molina, United Healthcare and Amerigroup.

Should you have any questions regarding this topic or any other Medicaid related enquiry, please contact our office on 941-906-1231 to schedule an appointment to meet with one of our attorneys.

January 27, 2017
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What are Medicaid’s Asset Transfer Rules?

By Asset Protection Planning, Government Benefits, Medicaid Planning

Transferring one’s assets prior to applying for Medicaid can create several problems. The government does not want individuals transferring all of their assets to children and relatives in order to qualify for Medicaid. Thus, Congress has put in place rules and penalties for transferring assets.

Some transfers that are deemed inappropriate by Medicaid include refusing to take an inheritance that is left to you, adding a person’s name to an asset, selling an asset for less than its fair-market value, and purchasing non-Medicaid compliant annuities.

The penalty period is determined by dividing the amount transferred by the average private cost of a nursing home in your state, so determined by Medicaid.

When applying for Medicaid, individuals must disclose all transactions during a period of time called the “look-back period.” As of 2005, the Deficit Reduction Act increased this period from 3 to 5 years.

Recipients of financial transfers who are exempt from Medicaid penalties include a spouse, a disabled child, a trust for the benefit of a disabled child, and a trust for a disabled individual under 65. And exemptions also apply to the transfer of a home. You may transfer your home without the fear of penalties to your spouse, a child under the age of 21 who is disabled, a sibling who has lived in the home and holds an equity interest, and a “caretaker child.” A caretaker child is a child of the applicant who lived in the house for at least 2 years prior to the applicant’s nursing institutionalization and provided care for the applicant.

Please contact our office to schedule an initial consultation for any of your Medicaid Planning, Estate Planning, or Veterans Benefits needs.

December 30, 2016
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Special Needs Trust Fairness Act

By Asset Protection Planning, Government Benefits

Yesterday a historic bill was signed into law by President Obama.  It allocates over $1 billion to fund Alzheimer’s research to find a cause and a cure, and methods of prevention.  Since so many of our elderly we serve and their families are devastated by this terrible disease, we have been given hope that the necessary amount of attention has been given by this bipartisan legislation to address this issue which left unchecked, could overwhelm our institutional care programs and service delivery infrastructure.

In addition it immediately gives a disabled individual, who is legally competent, the right to establish their own self- funded d4A Special Needs Trust.  This is a trust which exempts assets from being considered by Medicaid.  However all self- settled special needs trust are subject to a Medicaid payback on the death of the beneficiary.  This will end the foolish waste of time getting an elderly parent or a court to establish an individual SNT for a person who could do so himself or herself, but for the mistake made in the original OBRA ’93 act that left out the word “individual.”

If you have further questions on this topic please contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

December 14, 2016
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Assisted living residents receive support from Medicaid

By Long-Term Care, Medicaid Planning

Unlike nursing homes, assisted living facilities are housing options for individuals who are able to live independently but need some assistance. Another distinction between the two is that there is no requirement that Medicaid pay for assisted living facilities. But as of May 2016, 46 states and Washington D.C. have provided some sort of assistance to assisted living residents.

According to the website Paying for Senior Care, Florida has eliminated Home and Community-Based Waivers (HCBS Waivers) and now covers assisted living through the Statewide Managed Medicaid Care – Long Term Care.

December 2, 2016
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Is a Third-Party Supplemental Needs Trust right for you?

By Asset Protection Planning, Estate Planning, Government Benefits

While a first-party supplemental needs trust is designed to allow a disabled beneficiary place their own funds or assets in a trust, a third-party supplemental needs trust is meant for family members to assist a person with disabilities.

Just like a first-party supplemental needs trust, the assets in the third-party trust do not jeopardize the beneficiary’s eligibility for Supplemental Security Income (SSI). A third-party supplemental needs trust can hold any assets that the family wishes to provide (e.g. stocks, bonds, houses, etc.). Rather than giving the disabled individual the funds directly, the family can transfer them to the trust in order to provide a benefit to the beneficiary while not disqualifying the beneficiary from receiving government benefits.

While the beneficiary of the first-party supplemental needs trust must be below the age of 65, the age of the beneficiary does not matter for a third-party supplemental needs trust. Another key difference is that there is no payback requirement for a third-party supplemental needs trust. This means that when the beneficiary passes away, the remaining assets in the trust can be passed to relatives or charity instead of being used to reimburse the government.

If you have further questions on this topic or wish to set up a third-party supplemental needs trust, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

October 21, 2016
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Is a First-Party Supplemental Needs Trust right for you?

By Asset Protection Planning, Estate Planning, Government Benefits

A first-party supplemental needs trust is created to allow disabled persons to receive the benefit of their funds in a trust while still qualifying for and receiving government benefits. An alternative to this trust is a pooled trust. A pooled trust is created by a non-profit organization, and individual beneficiaries can create accounts within the trust.

By pooling the assets of disabled persons, the organization can manage one master trust and maximize the benefits for the beneficiaries. The non-profit can make more stable investments and provide more services than a normal supplemental needs trust.

Most people with special needs join a pooled trust when they do not have anyone to create a first-party supplemental needs trust for them. And just like a first-party supplemental needs trust, a pooled trust is used for people to qualify for and remain eligible to receive government benefits, such as Medicaid and SSI.

A couple advantages of a pooled trust are the low costs and the fact that the funds will be used to help others with disabilities.

If you have further questions on this topic, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

 

October 18, 2016
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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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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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