Elder Law Planning Tips
1. Durable Powers of Attorney. A Durable Power of Attorney must be executed in advance of incapacity and should be comprehensive enough to provide Medicaid planning provisions.
2. Paying for Long Term Care Costs. Paying for long term health care out of your personal funds will quickly deplete your assets. Medicare and supplemental health insurance policies provide limited coverage. If a long term care insurance policy has not been purchased, the next step is to conduct planning for Medicaid and/or Veterans benefits. Veterans benefits, if applicable, can provide financial assistance with in-home care or assisted living facility costs. Medicaid provides financial assistance for nursing home costs and some assisted living facility costs.
3. Gifts under Medicaid Rules. Applicants for Medicaid are asked if any gifts were made during the previous 5 years (the look-back period). Gifts made by a Medicaid applicant after November 1, 2007 can have especially harsh consequences. Knowing the Medicaid rules regarding gifting will avoid losing Medicaid benefits.
4. Veterans Pension Benefits. A veteran, who has served at least 90 days on active duty with at least one day during a war time and discharged under conditions other than dishonorable, or a surviving spouse of a veteran, may be entitled to pension benefits if certain asset and income requirements are met. A service-connected disability is not required. The amount of pension benefits available depends on the level of disability and the amount of monthly unreimbursed medical expenses.
5. Third Party Special Needs Trusts. Providing for a disabled family member or loved one should be done through creating a Third Party Special Needs Trust so as to not disqualify the person from receiving public benefits, such as Medicaid or Supplemental Security Income (SSI).
6. Advantages of Living Trusts. A Living Trust that is properly drafted and funded is the legal tool that will provide your plan of who will be in charge of your affairs and how your affairs will be handled in the event of your death or incapacity without court supervision. In addition to avoiding probate, Living Trusts offer the ability to establish plans for the management of your affairs in the event of incapacity.
7. Do Not Resuscitate Orders (DNR). A DNR Order is a doctor’s order and indicates that a physician has determined the course of treatment for a terminally ill patient. A DNR Order declares that absolutely no efforts are to be made to resuscitate or revive a person under any circumstances. In contrast, a Living Will is typically signed at the time other estate planning documents are prepared in which you direct that your life not be artificially prolonged with life prolonging procedures in the event you are suffering from a terminal condition, end stage condition, or a persistent vegetative state. Life prolonging procedures consist of any medical procedure, treatment, or intervention, including artificially provided substance and hydration, that sustains or restores a vital function.