Category: Elder Law

For many people, the cost of senior care is challenging or even impossible to manage without the assistance of Medicaid. In order to qualify for Medicaid, you need to keep the value of your assets below a certain limit, and one way that people choose to meet this requirement is by gifting assets, including their homes, away to children and loved ones. But what are the pros and cons of this strategy?

“Spend down” Strategies Help You Qualify for Medicaid 

A “spend down” strategy is where you actively reduce your assets to meet Medicaid requirements. It is an effective way to ensure that you qualify for Medicaid when the need arises – essentially, it means reducing your assets to the point where you qualify in a way that ensures you don’t incur penalties.

While gifting your assets is an effective way to spend down, it has to be done the right way or Medicaid will still penalize you or reject your application. The most significant obstacle to this strategy is the 5-year look-back period. If you have gifted away your home or other assets within the last 5 years, you face a transfer penalty where you are ineligible for Medicaid. Even the $14,000 per year tax-free federal gift allowance is included in this calculation and can affect eligibility.

You are only excluded from this look-back period under very special circumstances, including:

• If your home has been transferred to your spouse.
• If you have transferred it to your blind or disabled child under 21 years old.
• If you have transferred it to a caretaker child – that is, your child who has lived with you for 2 or more years in order to care for you.
• If you have transferred your home to your sibling who has an equity interest in the house and who has lived with you for 1 year or longer.
• If you have transferred it into a special needs trust to care for a disabled person under 65 years old.

Speak to a Qualified Elder Law Attorney for a Sound Medicaid Planning Strategy 

Medicaid planning is a complex process and one where a reliable, clear strategy is followed step by step. With the right help, you or your loved one can get the care and financial assistance they need.

Frank R. Campisano is highly experienced and compassionate elder law attorney with considerable knowledge of Medicaid issues. In addition to planning ahead financially for Medicaid eligibility, he is also able to assist with applications, appeals and other Medicaid issues. If you or a family member needs assistance with their Medicaid planning or protecting their assets effectively, don’t hesitate to get help today.

In addition, you can also prepare additional estate planning documents, such as your Last Will and Testament, Healthcare Proxy, Power of Attorney documents and trusts.

For a free consultation and Medicaid assistance, please contact us today and speak to Frank R. Campisano or visit our website at http://www.scclegal.com/

In May this year, the Economic Growth, Regulatory Relief, and Consumer Protection Act was signed into law, and it contains some elements that are critical to reporting financial elder abuse. This is vital to protecting seniors and their assets, as financial abuse that targets the elderly is reported by the National Council on Aging to cost seniors between $2.9 – $36.5 billion each year and carries severe emotional trauma. In fact, these numbers are thought to be much higher specifically because seniors are unlikely to report these crimes.

The law includes a section from a previous stand-alone bill from Senator Susan Collins (R-Maine) which incentivizes financial institutions to report financial abuse of the elderly (age 65 and up) that they witness. It also provides immunity from any lawsuit alleging elder financial abuse if the financial institution reports it to federal or state law enforcement. This is an important step because financial institutions are often the first to witness this form of abuse through elderly clients making unusual transactions that may indicate a scam.

Working Together is Key to Protecting the Elderly from Financial Abuse 

The elderly are especially vulnerable to financial scams and abuse, and it is often difficult if not impossible to recover from such an event, making it essential that each element of the community work together to prevent and report these incidents. Programs such as the Senior$afe program in Maine encourage this by helping state regulators, financial institutions and legal organizations to work together to educate employees on how to spot financial elder abuse and report it effectively to law enforcement. Similar programs are in place in counties across the country, helping to protect vulnerable citizens. It is also essential that elderly people and their families have someone they can trust to talk to about financial planning to help prevent them from falling victim to a scam.

Protect Elderly Citizens Through Effective Advice and Planning from an Elder law Attorney in New Jersey 

If you would like to help your loved one get the legal assistance they need to protect their assets and wellbeing, speak to elder law attorney Frank R. Campisano today. Experienced in elder law and estate planning, he is compassionate and committed to his clients, ensuring that you’ll receive the highest quality legal expertise and guidance. In addition to sound elder law advice on preventing elder abuse, Medicaid assistance and Medicaid planning, you can also prepare additional estate planning documents, such as a Last Will and Testament, Power of Attorney documents, medical directives and trusts. For a free consultation, please contact us today or visit the website at http://www.scclegal.com/