As an elder law firm, we are sometimes asked about the effectiveness of Medicaid planning. The following represent just ten possible scenarios which provide examples of how such planning may benefit a client.
SCENARIO #1:
Lisa, 83, entered a nursing home and applied for Medicaid. Her application was denied because her monthly income exceeds the income cap of $1,869.00 (in 2007).
An elder law attorney helped her qualify by arranging for part of her income to be disregarded for Medicaid eligibility purposes.
SCENARIO #2:
Joe, 63, resides in assisted living. He became disabled as a young adult, but he does not qualify for Social Security disability benefits because he does not have the requisite number of quarters of covered employment. His parents, now deceased, had set up a testamentary trust to provide for his needs, but the trust assets are nearly exhausted.
The elder law attorney helped Joe qualify for both Supplemental Security Income ("SSI") cash assistance and for Medicaid.
SCENARIO #3:
Barbara, 82, entered a nursing home. Her husband, Bob Black, 85, remains at home. The couple's combined assets are $200,000.
The elder law attorney was able to arrange for all of their assets ($200,000) to be protected for Bob's needs. Thus, Barbara qualified for Medicaid without having to spend down any of the couple's assets.
SCENARIO #4:
Jo qualified for Medicaid in June 2006. Her only asset is her home (valued at $100,000), which is exempt for Medicaid eligibility purposes. Jo heard that the state can claim her homestead when she dies, so her family contacted an elder law attorney.
The attorney arranged for Jo's home to pass to her heirs in such a way that it would be legally out of the reach of the Medicaid estate recovery program.
SCENARIO #5:
Marge, 52, lost her SSI cash assistance and Medicaid benefits because she received an inheritance of $75,000.
The elder law attorney helped Marge divert the $75,000 to a special type of trust that allowed her to re-qualify for SSI and Medicaid beginning the following month.
SCENARIO #6: Vivian, 72, entered a nursing home and applied for Medicaid. Her application was denied because she owns an out-of-state homestead.
After consulting an elder law attorney, Ms. Valdez was able to take certain action that allowed her out-of-state home to be exempt for Medicaid eligibility purposes.
SCENARIO #7:
Mae, 56, is disabled and needs a liver transplant. She lost her SSI and Medicaid benefits because she began receiving Social Security benefits on her deceased ex-husband's work record.
The elder law attorney was able to get Mae re-qualified for Medicaid which paid for her liver transplant.
SCENARIO #8:
Frank, 26, lost his SSI and Medicaid benefits because when his father died he began receiving Social Security disability benefits on his father's work record.
The elder law attorney was able to get Frank re-qualified for Medicaid.
SCENARIO #9:
Doris gave $100,000 to her son, in December 2005, while she was in good health. She suffered a stroke in January 2006, and she entered a nursing home and applied for Medicaid in February 2006. She was notified that Medicaid would not help with her nursing home costs because of the $100,000 gift that she made in December 2005.
The elder law attorney got Doris qualified for Medicaid despite the $100,000 gift.
SCENARIO #10:
Melanie, 68, is healthy. She is pre-planning for long-term care ("LTC"). She has assets totaling $300,000.
The elder law attorney helped Ms. Moore reposition her assets so that she will qualify for Medicaid within five years. If she needs Medicaid sooner, the plan can be revised at that time.
The above scenarios are just a few examples of how successful Medicaid planning can be. In each case the families of the individuals involved were spared huge cash outlays because they had the foresight to engage in Medicaid planning.
Wright Abshire, Attorneys, is available to assist you will all aspects of Medicaid planning, as well as with durable powers of attorney, advance medical directives, estate planning, wills, and probate.
