Elder Care Lawyer Question

ElCy

I’ve talked to 3 Elder Care lawyers to protect the house if husband goes on Medicaid. Two of them want me to set up irrevocable trust but they are very expensive. Another says I should take my husband off of the deed. But I was told that won’t help.

Does it matter if I set up trust through a regular trust attorney who will charge thousands less? Or is it best to let Elder Care lawyer do it?

loveskitties

I see from your profile that you live in TN.

Is your concern that Medicaid will consider the home to determine eligibility?

Or is your concern that Medicaid will take the home after his death in order to recover costs incurred by them in his life time?

Here are 2 web sites which might help you make a decision:

https://www.medicaidplanningassistance.org/tenncare-choices-program/#:~:text=Home Ownership The home is often the highest,the home exempt (non-countable) in the following circumstances.

https://www.medicaidplanningassistance.org/can-medicaid-take-my-home/

Sorry they are not hot links...don't know how to make that happen.

Joe C.

EICy, Below are the lot links for the sites loveskitties recommended. Medicare rules vary from state to state but in my state, MA, the community spouse keeps the house and still qualify the spouse for Medicaid. I think this in typical of many states but the fly in the ointment is if the community spouse becomes ill down the road and need long term care then the house would be counted as an asset. I set up an irrevocable trust for that reason, DW will need long term care at some point and I do not have a crystal ball to know what my future health needs will be. DW & I wanted to leave the house to the children and this was the best plan to insure that. I was able to get a complete package of the trust, wills, DPOA and healthcare proxies for $1,500 from a CELA but I did get quotes from other attorneys as high as $6,000 so it paid to shop around.

 https://www.medicaidplanningassistance.org/can-medicaid-take-my-home/

 https://www.medicaidplanningassistance.org/tenncare-choices-program/

ElCy

I’ve been getting quotes from 5000-10,000. That’s why I’m wondering if An estate attorney rather than an elder care attorney could set up the trust.

Joe C.

I believe any attorney could set up the trust but you need to make sure they understand the nuances of Medicaid rules in your state. It would be devastating to pay for the trust then down the road find out that there was some flaw in the way the trust was written.

Crushed

All good advice

Question  Who is the beneficiary of any trust

towhee

Qualifying for Medicaid is a subject that gets discussed a lot on the boards and in the support group I am in. There are a couple of general suggestions and information that might be helpful in making your decision. First, the lawyer needs to get enough information from you that they can provide options that fit your particular circumstances and it helps if your mind is not already make up. On the other hand, while wills and powers of attorney are a lawyers' bread and butter, in my opinion, trusts are their cake. You need some knowledge going in or talk to multiple lawyers to figure out what you need. 

Second, your loved one with dementia needs to be still able to sign papers.

You have been given two choices, put things in your name or set up a irrevocable trust. While putting assets in your name will not help with Medicaid it will serve a purpose. It will stop someone, relative or otherwise, from scamming your husband out of assets, or you otherwise losing assets to his bad judgement. It happens. It will also let assets pass to you without them having to go through probate.

Setting up an irrevocable trust-- Are you sure this is what you want to do? Medicaid often considers putting assets in an irrevocable trust the same as giving those assets away and it can trigger penalties if done within the lookback period. Tennessee is still 3 years I think. What this means is that for three years from the time you set up the trust, your husband will not be eligible for Medicaid. So, you would need to be sure that you can either take care of him for the next three years or have the money to pay for his care.

A home under 600,000? dollars is not counted when determining eligibility for Medicaid. Yes, after you have passed away, not your husband but you, Medicaid will try to recover their money from your estate. So unless you are trying to pass the home on to your children, you might want to think about whether you really need a trust. 

I would check out the websites you have been given by previous posters and get one of your lawyers to really explain the Medicaid eligibility process to you.

DrinaJGB

Is a spouse allowed to be the trustee of the PWD's irrevocable trust?

 Does the lookback period start with the date when the trust was formed and assets transferred into the trust?

The lookback period is 5 years where we are.

loveskitties

As I understand it, the look-back period begins when Medicaid is applied for.

This means they will review finances from that date, back thru the "x" number of years to determine eligibility.

DrinaJGB

So you hold your breath for several years hoping PWD doesn't totally crater beforehand, and if they do crater you are left holding the bag as caregiver no matter how bad it gets. Wow.