Vets & Long Term Care: Don't Ask the VA

For many veterans, long term care benefits are incredibly valuable. But, I've found that these benefits are sometimes little known and under utilized by those who qualify.  Often, the same people I help successfully obtain long term care benefits had been previously denied benefits by the Veterans Administration.

Basic Facts
1. Many people who qualify have previously been told they will not qualify. Therefore, it is best to get another opinion from a qualified benefits planning expert. (NOTE - Often worst place to go to check eligibility is VA.)

The Benefits
2. The maximum amount of long-term care benefit is:
  Veteran with no spouse up to $1,554/month
  Veteran with Spouse up to $1,842/month
  Surviving spouse: $998/month
(NOTE - Actual benefit calculated based on household income adjusted for medical expenses.)

3. Can be used to assist with payment of medical and care related expenses, including skilled and non-skilled in-home care.

Service Related Eligibility Requirements
4. The Veteran served at least one day during wartime and at least 90 days of consecutive active duty and honorably discharged. (NOTE – World War I or II, Korean War, Vietnam, Gulf War)

5. Disability does not need to be service connected and Veteran does not have to be retiree or serve in active combat.

Medical Eligibility Requirements
6. Veteran or Spouse must be disabled or over the age of 65.

7. Disability determination based on medical certification (doctor signs form stating that there is need for care – assistance with ADLs).

Financial Eligibility Requirements
8. Asset limit – approximately $80,000 countable.

9. Income test similar to Medicaid spend-down (depends on care expenses).

10. Planning is allowed and legal to meet the income and asset criteria for eligibility – unlike Medicaid, no look-back or divestment penalty for transfers.

CAUTION – many people who first qualify for this benefit may later need Medicaid so any realignment of assets should only be done with the assistance of a qualified  benefits planning expert to avoid problems.

Mr. Mall is a nationally certified elder law attorney. For a free consultation about Elder Law, Care Advocacy, Estate Planning or any of the information contained in this blog, contact Mall Malisow & Cooney, P.C. toll free at (866) 699-1800 or online at www.theeldercarelawfirm.com 

What To Do About My Revocable Trust?

It's been  recommended to me that I Quit Claim my home held jointly with my wife to my revocable trust. Do you agree that that is the best way to go? What's the difference.  Either way the house would go to my wife if I die before her.
Thank you for your advise. - T

T:
Great question!  Did you have a lawyer assist you in the design and drafting of the trust?  If so, I suggest you first consult with him or her for guidance.  The reasons most people choose to retitle asset into a revocable trust is control now while you are alive and well, later in the event you become incapacitated, and eventually - after your death.  As with any asset, if no one has legal authority to control the asset when the owner(s) become incapacitated or after death - then probate court process becomes necessary.

Even though your wife will enjoy the use of the house if you predecease her, what happens when you are both gone?  If you do not retitle the house to have it controlled by your trust after you and your wife are both gone the next in line to benefit from that asset will have to go through the probate process to transfer the house.  Additionally, what happens if you and your wife pass in a common disaster?  In my experience it is generally best for the property to be titled so that probate process is unnecessary.

The answer to your question could change depending on certain facts.  Some additional questions might include the following: 1) Do you and your wife have one trust or two?; 2) Do you have a taxable estate?; 3) Who gets the house after the second spouse passes?; 4) Are either of you have any reason that puts you at high risk of being sued? 

In our office we generally do not use a Quit Claim Deed to fund the marital home into a trust.  Depending on the specific facts we use a few different options.  For us the closest equivalent would be a Warranty Deed.  Other methods are also possible to obtain the specific outcomes you desire.  Your attorney should be in the best position to know your wishes, your facts and your needs and have the best ability to provide you with specific answers to your questions.

I hope this helps.
All the best,
Sandy

My Aching Back: Do I Go to Court?

To: Ask the attorney,
My name is John. I am 50 years old. I had a major back surgery at mid 30 which i had to have a pain pump installed in 2000 they changed my pump in April 2008 with which they messed up the surgery and caused me great prolbems with all parts of my life after i went to another dr and he fixed the prolbem in may 2008 the prolbem started again were fluid was leaking from my spine i would like to know if i can hold the first dr for all my trouble please let me know.

THANK YOU VERY MUCH
J 

J:
Thank you for your question and sorry to hear about your problems.  First, I recommend that you continue to seek to obtain the best possible medical care available to overcome the problems you are having.  Second, I assume you are asking a lawyer because you thinking about legal recourse, that being a medical malpractice claim.  If so, I suggest you consider hiring a lawyer who focuses his or her practice on such claims.  That area of legal practice has become very specialized.  Also, be aware that there are strict rules about how and even the timeframe in which such a claim must be filed.
I wish you the best and hope you find relief from your suffering soon!
Sandy

Selling the House

Good morning.  My sister has recently told me that there is not going to be as much money in my mother's estate as I thought and I have never said anything about it. Now my sister said she is going to sell mother's house and it was supposed to stay in family, it's an income property. My sister said that she has someone who will buy it. My name is on the deed. I think my niece and my sister think i forgot about signing the deed. My mother is not doing very good, does not remember and is failing. My sister is working on putting my mother in nursing home which she promised she would never do. I would like to be ready for anything that might happen.
 
1. If my sister asks me to sign the deed what should I do?
 
2. Should I sign my name if they don't ask me to sign deed, and take care of it when my mother passes away?
 
Sincerely,
H

Dear H:
Thank you for your thoughtful questions.  The facts you provide raise a long list of additional concerns but I do not feel capable of answering your questions directly without more information.  It sounds like there is more than one person on the deed - is this correct?  Also, it sounds like your sister is telling you that money is needed to take care of your mother and selling the house may help provide extra funds needed - is that correct?  Could your mother continue to be properly and safely cared for outside of a nursing facility?  If so, where?  How would that be paid for?  Is your mother presently eligible for any type of public or private benefits such as long-term care insurance, veteran's aid & attendance, Medicaid?  Does anyone have legal authority to act on your mother's behalf (legally, financially, medically) If necessary?  All of these and more questions would have to be answered before good guidance could be provided. 

My only general answer I can give you concerns your question about should you sign the deed if asked - and even here my answer is, get the advice of good counsel who represents your interests. 

My recommendation is that you are prepared to answer the questions I noted above and for you to hire a qualified attorney to assist you directly with all the above issues.
Sorry I couldn't be of more help.
Sandy

Life Insurance

Hi,

My elderly father purchased a small $10,000.00 accidental death insurance policy from a Life Insurance Company.  The company delayed payment for 4 months while they determined that he actually did die as a result of a fall.  When they finally sent the payment, it was for $2,500.00, not $10,000.00.  The explanation was that the amount was reduced because he was older than 70 when he died.  My issue is that he was older than 70 when he purchased the policy.  He purchased and paid for a $10,00.00 policy, not a $2,500.00.  Is what they did legal?  Also, are they not supposed to pay interest when they delay payment?  One other bit of information that may or may not be relevant, he purchased the policy through a local bank.  Do they have any role in ensuring that Monumental acts ethically?

Thank you for you assistance.

Sincerely,

L

Dear L:

Thank you for your question.  The facts you provide sure make it sound like something fishy is going on.  Review of the insurance contract is the first place I would go as a lawyer.  You may also consider filing a complaint with the State of Michigan since the State regulates insurances companies that write policies inside the State.  The State agency with that authority is the Office of Financial and Insurance Regulation.  Information about the complaint process can be found on the web by clicking here.

I recommend that you also consider discussing this matter with a bank representative as well who may be able to help. Good luck and please let me know what happens.
All my best.
Sandy