While Americans are living longer than ever before, longevity comes with a price. Many of us will eventually require expensive long-term care when physical or cognitive impairments make it impossible to continue living independently. It's for these reasons that having an experienced elder law attorney in Michigan can make all the difference in having peace of mind as you age.
We certainly don’t want to alarm you, but consider the implications of the following statistics:
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At least 70% of people over the age of 65 will require long-term care at some point in their lives.
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In Michigan, the average cost of a nursing home is nearly $10,000 per month or $120,000 per year. In certain cases, the costs are considerably higher and are expected to rise in coming years.
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Many families exhaust their life savings within a year or two of a family member moving into a nursing home.
What is Elder Law?
Elder law involves helping seniors and the people who love them plan for the legal, financial, and emotional challenges that come with growing older. In particular, this specialized area of the law deals with the growing problem of how to pay for long-term care without using your home or life savings.
What is Medicaid?
Medicaid is a federal program which is overseen by the state where the program recipient lives. This program covers certain medical expenses for individuals who are 65 or older or have other qualifying conditions.
How Do You Qualify for Medicaid?
Medicaid imposes a limit on the value of personal assets a recipient can have in their possession. In Michigan, residents can have $2000 in personal assets. Medicaid does permit recipients to keep certain assets such as their home. However, according to our Howell elder law attorney in Michigan, the program has several rules about how other assets will be treated for purposes of establishing eligibility.
What is the Look-Back Period?
Medicaid has a five-year look-back period which allows the program to review all of an applicant’s asset transfers which occurred during the five-year-period before they applied. If it is determined that an applicant gave their assets away in a particular manner, the value of the asset will be calculated in a way which will keep them from being eligible for benefits for a specific number of months.
Does the Program Consider Marital Assets?
A married couple’s assets are considered together even when only one spouse is applying for Medicaid. The program will examine the couple’s finances beginning on the day the person starts Medicaid services. It is required that half of the couple’s resources be spent down to allow the applicant to qualify. In Michigan, the Community Spousal Resource Allowance enables the non-applicant spouse to keep up to $120,900 in countable assets. However, any amount the couple has beyond this amount will have to be spent. However, if all that couple has is $24,180 or less, they will be allowed to keep these funds.
What is Long-Term Care?
Long-term care planning, which is also called pre-planning or Medicaid planning, is for people who are healthy now but want to be prepared for the possibility of needing expensive long-term care at some point in the future. While all seniors can benefit from this proactive approach, long-term care planning is especially important for couples with a significant age difference between spouses or anyone with a family history of Alzheimer’s disease or other illnesses that increase the likelihood of requiring long-term care in the future.
Preparing for the High Cost of Long-Term Care
Our Medicaid planning lawyer will work closely with you to design a plan to protect your life savings against the cost of long-term care while at the same time ensuring you receive the care you need. Medicaid planning must consider a wide range of factors, including:
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The level of care you might require
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Your available assets
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The value of exempt vs. non-exempt assets
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Income payable to the potential Medicaid applicant directly versus income payable to a spouse
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The needs of spouse still remaining at home
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How trusts could be used to leave an inheritance for your children or grandchildren
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Options to help you “spend down” assets safely and effectively
A word of caution—many people think that they can just give assets away to loved ones before entering a nursing home in an effort to qualify for assistance from Medicaid. While gifting is certainly possible, it must be done in precisely the right way and at the right time. The penalties for giving away assets improperly to become eligible for Medicaid are severe, including loss of eligibility for years.
Coping With a Medicaid Crisis Situation
While it’s always best to plan ahead, sometimes unexpected emergencies force you to make difficult choices. When a person has been told that they must enter a nursing home in the very near future, it gives rise to what is known as a Medicaid crisis situation.
Given the high cost of nursing home care in Michigan, denial of assistance from Medicaid is indeed a financial crisis for all but the wealthiest of families. However, do not despair. If you or someone you love is facing a Medicaid crisis, there’s still hope.
What you must understand is that information about Medicaid eligibility provided by well-meaning friends, family, and even social workers is often outdated or inaccurate. The laws governing Medicaid eligibility are complicated to begin with and often seem to change from one year to the next. Our Medicaid planning lawyer understands these laws and can help you qualify for Medicaid assistance even if you have significant assets.
If you are already in a nursing home, we can still help. We can help you get the care you need without losing your home or your life savings.
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Why Hire an Elder Law Attorney in Howell or Clinton Township
Everyone wants the best for their elderly loved ones, and the elderly themselves need and deserve high quality legal counsel and guidance. A Michigan elder law attorney can handle a variety of legal matters, including issues relating to: health care, long term and end-of-life care planning, guardianship, retirement, Social Security, Medicare/Medicaid planning, nursing home planning, asset protection, Veterans benefits and estate planning (for example, Wills, Living Trusts, Powers of Attorney). Unlike many attorneys, elder law attorneys focus on and have expertise in the needs of older adults and their families. This is an important distinction since so many issues affecting the elderly are unique from those relating to younger adults.
Another reason that the experience and expertise of an elder law attorney are so important is the fact that elder law matters are pursuant to state laws. State laws have specific provisions that apply to wills, trusts, advance directives, financial power of attorney, and formalities relating to signing and executing these documents. Furthermore, it’s the job of the states to administer Medicaid at the local level, and the laws and regulations regarding Medicaid, nursing homes and asset protection vary from state to state.
Here are some more reasons to hire an elder law attorney:
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A good elder law attorney takes a holistic approach. This entails much more than just signing documents and focusing on short term issues. It involves a personal connection, and building long-term relationships with elderly clients.
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An elder law attorney understands and relates to the physical and mental issues that go along with aging.
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Many people have pre-conceived and often incorrect ideas on the capacity and decision-making capabilities of the elderly. A good elder law attorney does not.
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An elder law attorney is often familiar with a broader network of professionals to recommend to clients, including psychologists, social workers, healthcare providers, placement professionals, etc.
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Elder law attorneys can help sort out and mediate family situations and disagreements. The client will always have a dedicated advocate looking out for their interests.
[Related: Laws and Regulations for Medicaid in Michigan]
How to Find the Best Elder Law Attorney in Michigan
If you’re looking for the best elder law attorney in Michigan, there are several things you should consider in your search. After all, not all attorneys are created equal. Here are some steps you can you to find a elder law attorney that suits your needs:
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Read online reviews. It’s very important when conducting your search for a great elder law attorney in Michigan that you read reviews from former clients. No one knows how a particular lawyers works better than people that have been in your same shoes. See how other elder law / Medicaid clients felt about your prospective hire.
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Ask family and friends. If you trust your loved ones with other big decisions in your life, why should this be any different? Ask your family and friends if they have any lawyer recommendations for you.
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Schedule consultations. Just because a former client or your loved one had a great experience with an attorney, doesn’t mean it will go exactly the same for you. Set up several consultations with prospective attorneys and see which you feel most comfortable working with.
There are definitely other things that go into the decision-making process, but if you start with these three, you should start off on the right foot.
Let Us Help You Create a Plan That Fits Your Unique Needs
The earlier you begin the process of planning for long-term care, the more options we will have to protect your assets while affording any care you might require. Contact us today to schedule a free strategy session to discuss your particular needs and goals. Consultations are available at our Howell or Clinton Township offices or anywhere in Michigan virtually.
