It’s a fact. Everybody knows that many elder seniors can only remain in their homes with help. It might be help with general upkeep, or financial matters, or it might be for personal assistance items like help with bathing or preparing meals. What if Mom pays a neighbor or daughter to help her and some years later needs a nursing home?
It will shock many to know that the Michigan Medicaid Department will penalize seniors who use money to stay out of the nursing home. Those payments will be deemed “divestment of assets” so that the senior can qualify for Medicaid financial assistance in a nursing home sooner. Talk about bureaucratic logic! Elders get help in home to stay out of a nursing home not to get in it sooner!
Note: So far we have not heard of problems for families who hire a commercial agency to provide these personal, in-home services.
Michigan Elder Law Attorneys gave notice to the Michigan Department of Health and Human Services that its policy is not in compliance with the law. So far the Department has not made changes, but reports are that families who hire lawyers to apply for Medicaid don’t have any problems getting approved.
The Elder Law and Disability Rights Section of the Michigan Bar will meet in early January to review the problem further. We’ll be updating as soon as more information comes in.
Have any questions? Give us a call, (248) 356- 3500 , leave a message and we’ll get back to you within 24 hours.
I’ll get right to the point. There are two reasons to have a trust: 1) You; 2) your Stuff.
Question: What is more important to you, You or your Stuff?
I think you can see why I find it very curious that all articles on trusts for retirees deal with their stuff. What about You?
Sure, dealing with your Stuff is important, I don’t deny that. You want to be sure that when you die only those people or causes you care about get your gifts. I can repeat those many reasons in another post if you wish – drop me an email to Jim @ JimSchuster.com – but I think a quick search will come up with many.
Let’s get to the Main point: What about You?
My experience in Elder Law taught me that very, very few seniors have a great, action filled life then drop dead on the tennis court, golf course, or exotic vacation etc. For most it is years of slow decline with increasing need for help from others. And that is the reason a childless senior/couple need a trust.
If you have no children who will take care of you when you cannot manage your daily affairs? If you have no trust to provide instructions, then you might have the experience of the childless John, of whom I wrote in a prior blog. When he needed daily help he was removed from his home by the Probate Court appointed guardian/conservator. He was put in a locked assisted living facility. He had no say about where he could live or how his savings of over a million dollars was spent. He had no say.
If John had a trust, his trustee would have arranged for him to live in his own home with whatever help he needed according to the terms in his trust.
So if you are a childless senior/couple and you have significant savings talk to a certified elder law attorney about how “your trust” can take care of You. Mind you there are some attorneys who claim to be proficient in elder law and are not. If you need a referral to a good elder law attorney drop me a line to Jim @ JimSchuster.com. I’ll get you to the right place.