Grand Rapids, Michigan Elder Law Attorneys
Financial issues and healthcare questions facing older Americans require legal attention sooner rather than later. In order to avoid Medicaid look-back penalties, tax liability, and probate complications, establishing a will, trust, or guardianship is essential. At the law office of the Howard Law Group, our elder law attorneys help families and out-of-state adult children of elderly Michigan residents plan for the healthcare and financial needs of older loved ones. We evaluate our client's financial and health situation in order to determine if a guardianship is necessary and how assets can be reallocated in order to exempt them from Medicaid eligibility and taxation. If an elderly parent lives alone and will need to leave their home at some point, we discuss how to deed the property over to adult children or relatives and what must be done to avoid Medicaid look-back penalties and inheritance tax.
We've helped hundreds of families and individuals plan for the healthcare and financial needs of their elderly loved ones. For more information regarding our elder law practice and how we can help you, contact elder law attorneys at the Howard Law Group today and schedule a free consultation.
Elder Law Planning - Financial and Healthcare Needs
The law office of the Howard Law Group assists clients in regard to the following elder law issues:
- Medicaid eligibility
- Guardianships
- Re-titling assets
- Nursing home financing
- Durable powers of attorney
- Special needs trust
- Testamentary trust
- Immediate annuities
- Income redistribution pools
- Transfer ownership of a home
- Charitable remainder
- Healthcare directives
Medicaid - How the Look-Back Penalty Works
Since Medicare covers only short-term medical needs, most elderly Americans must qualify for Medicaid in order to pay for long-term, institutional care. However, in order to qualify for Medicaid, a person must spend down his or her assets first, often resulting in the depletion of bank accounts, stocks, or the selling of a home. Currently, the Medicaid look-back penalty is five years, as determined by the federal Deficit Reduction Act (DRA).
Under the terms of the DRA, a month's worth of Medicaid ineligibility is assigned for every asset transfer equal in value to the average cost of nursing home care in the state of Michigan. For example, suppose the average monthly cost for nursing home care in the state of Michigan is $5,000. If Mrs. Harrell transfers $60,000 to her daughter, she would have to wait 12 months before qualifying for Medicaid.
Medicaid Planning - Avoiding the Look-Back Penalty
There are a number of estate planning tools available for exempting some or all of your assets from Medicaid eligibility calculations. Our attorneys can discuss how a supplemental needs trust, testamentary trust, or immediate annuity can be used to protect more of what you've earned while providing much-needed income to you or a sick spouse while qualifying for Medicaid. Additionally, an income distribution pool may be advisable, depending on the amount of assets involved and the living situation of an elderly parent or spouse.
For more information regarding our elder law practice and how we can help you, contact estate planning attorneys at the law office of the Howard Law Group today.
