Articles Posted in Michigan Elder Law

Recent headlines indicate that there will be significant changes with the Department of Veterans Affairs (VA). If you are in metro Detroit or the Grand Rapids area, we can help explain these changes.

Many of these changes are caused by the backlog of applications for “service connected” pension benefits and healthcare benefits. A recent article in the Washington Post suggests that the problem not only exists within the Department of Veterans Affairs but extends into the Social Security Administration and other governmental agencies.

Despite the backlog, the federal government through the president’s executive order maintains that applications for “non-service” connected benefits, including improved pension and aid and attendance benefits will continue to be processed in a timely fashion.

Recent headlines indicate that there will be significant changes with the Department of Veterans Affairs (VA). If you are in metro Detroit or the Grand Rapids area, we can help explain these changes.

Many of these changes are caused by the backlog of applications for “service connected” pension benefits and healthcare benefits. A recent article in the Washington Post suggests that the problem not only exists within the Department of Veterans Affairs but extends into the Social Security Administration and other governmental agencies.

Despite the backlog, the federal government through the president’s executive order maintains that applications for “non-service” connected benefits, including improved pension and aid and attendance benefits will continue to be processed in a timely fashion.

Are you a senior residing in Macomb, Oakland, Wayne, Ottawa or Kent County and receive Medicaid benefits for your spouse residing in a nursing home?

If so, you need our help. Proposed changes to Medicaid regulations will expose people to the danger of losing benefits or incurring divestment penalties. Michigan Medicaid regulations provide that married couples eligible to receive long term care Medicaid benefits have one year form the date of initial eligibility to transfer all assets, other than the applicant’s primary account, to the well spouse or “community” spouse’s name.

Although this was always the law, the Department of Human Services (DHS) never truly enforced this policy. Proposed changes will require the community spouse to provide proof that assets disclosed on the initial application for benefits that were jointly owned were transferred to his or her sole name. If assets were not fully transferred, then the qualified spouse will become disqualified to receive benefits and will have to re-qualify for Medicaid benefits.

Not only can Serafini, Michalowski, Derkacz and Associates, P.C. provide seniors, veterans and their families with long-term care and benefit planning, it can also provide insight and planning for seniors and their families needing assistance with Medicaid for nursing home care. Moving into the West Michigan area in order to assist families and seniors with their care-giving needs, the firm will provide expert legal advice to solve elder law and other legal problems.

Nursing home planning creates eligibility for Medicaid sooner than otherwise would be available through traditional “spend down” strategies. Money and assets can be preserved even at the time of nursing home admission. For most seniors entering a nursing facility, 50% to 70% of an individual’s assets; and, up to 100% of a married couple’s assets can be protected through effective elder law planning. The key is to find an attorney that is skilled in the practice of elder law to use long term care planning strategies. By planning, families can care for their loved ones and protect their assets to supplement the quality of care and provide for the upkeep and maintenance of a protected homestead.

Serafini, Michalowski, Derkacz and Associates, P.C. provides expertise in elder law, veteran’s benefits, estate planning, probate and other matters. Attorneys are available to serve seniors and their families residing in Ottawa County, and, Kent County through the firm’s Zeeland, Michigan office.

I recently came across an article regarding Alzheimer’s Disease. Alzheimer’s Disease is becoming more and more prevalent as our population ages. It remains as a medical mystery to many physicians and specialists treating the disease.

The complete text of this article can be found by clicking on the link to the remainder of this entry.

Personality and Behavior When your loved one changes….
Coping with Alzheimer’s Disease

Estate Planning – More Than Just Avoiding Probate
Besides the obvious and often exaggerated fears of dealing with the probate court, such as lack of privacy and added cost, there are other important reasons to avoid probate that attorneys might not tell you. After the loss or incapacity of a loved one, family members are naturally bewildered and stressed out. Most go through different stages of grieving while others skip right to anger and disbelief. Add to this volatile mix, years of childhood hurt and unspoken frustration, and you have an expensive battle where no one wins, except the attorneys.

This battling can literally rip families apart. That is why it is so important to have the necessary estate planning documents, such as a trust, will and durable power of attorney for both financial and healthcare in place. It is also important to review these documents with your family. This way your wishes will be legally documented and your family can focus on grieving for their loss and not on fighting over what needs to be done.

Our office specializes in preparing the appropriate estate plan to help you and your loved ones focus on what is really important during stressful times. If you would like to make sure your wishes are known and your family can rest easy, call our office now. We would be happy to help.

I recently wrote on the topic of “Do It Yourself” estate planning. As a follow up, please click on the link below to read a great article on this subject.

Kimberly Palmer of U.S. News and World Report: Money has published an article that addresses the risks associated with the creation of legal documents without professional help. Her observations come as LegalZoom, a website offering do-it-yourself legal documents, becomes increasingly popular.

After reading this article, if you have changed your mind, then call us at (586) 264-3756.

Michigan’s Department of Human Services (DHS) is the administrative branch responsible for administering and managing the state’s Medicaid program. This branch of government is responsible for setting the Medicaid eligibility criteria each year. Recently, the DHS released its financial eligibility criteria.

The new community spouse resource allowance is a minimum of $21,912.00 and a maximum of $109,560.00. This number is important for married persons with a spouse in the nursing home. It determines how much in cash and otherwise non-exempt assets the spouse living in the community will have to spend down before qualifying for Medicaid.

The community spouse income allowance, which is the income that the community spouse can keep each month and not have to pay to the nursing home has been increased from a minimum of $1,750.00 to $2,739.00. The new utility allowance (which provides additional income protection for the community spouse above the minimum protected amount) is $550.00 per month. However, it is important to note that these numbers do not adjust until April of this year.

Frequently, veterans that are residents of Macomb County who need assistance will consider applying for Medicaid benefits in addiiton to VA benefits. If you or your family fall into this category, it is important to understand the interaction between the different care systems as well as the differences in application of federal and state regulations.

Michigan Medicaid benefits fall into two categories: community based; and, long term care benefits. For the purposes of this discussion, we will consider long term care benefits. In order to qualify for this benefit, you must be: (1) over 65 and confined to a long term care facility; (2) be asset eligible; (3) be medically eligible; and, (4) reside at a facility that is certified to receive Medicaid benefits. In addition to this criteria you must also be free of any divestment penalties. Most people know this rule as the five (5) year “look back” period-and few actually understand what it means.

Pursuant to Medicaid regulations a divestment penalty is incurred for any transfer of an asset by an applicant for less than fair market value. This includes any sale of an asset for less than it is worth, any gift of an asset, or any other transfer in title to an asset. The resulting affect of such events is a one month penalty of ineligibility for every $6,300.00 of value transferred. The resulting penalty would begin to “run” when the Medicaid applicant is otherwise eligible to receive Medicaid benefits. While Medicaid has a “look back” period, the VA system does not. In fact, federal regulations provide that gifted assets prior to application for benefits should not be considered as part of the approval assets. However, any gifts made prior to application for VA benefits will trigger Medicaid penalties, if nursing home care occurs within five (5) years of the transfer. Accordingly, if you engage in Medicaid or VA planning it is important to work with an accredited individual that understands both Medicaid law and VA benefit planning, in order to avoid costly errors.