Category Archives: Nursing Home Planning

I Love it When a Plan Comes Together

By Robin Crouch

Our Firm’s mission statement is: “The Thom L. Cooper Co. is dedicated to building a continuing relationship with each senior client: to protect their wealth from the devastating costs of a catastrophic healthcare situation; to conserve their wealth for their use during their lifetime; to shelter their wealth from unnecessary legal expense or taxes; and to assure that their wealth is transferred to their heirs with minimal cost or delay.”

I love it when a plan comes together!

Case Study: A Husband and Wife came to us in 1999 to develop an estate plan, both were healthy and living on the family farm. Over the years as their health deteriorated, both ended up in a nursing home. The good news is, with the help of their children, they continued to update their plan to protect the farm and other cash assets for their children. As a result of their ongoing planning, Mom’s nursing home bill was paid by the State of Ohio, Dad’s bill was covered by his long-term care insurance, and the children inherited a total estate of $802,000. Even better, after the death of the second spouse, the estate was approved for the Qualified Farm Use Election and the children saved $24,496 in Ohio Estate Tax while inheriting the farm at current market value.

Want to find out how to make your plan come together? Call us at Cooper Law Firm.

Will I Be Kicked Off of Medicaid If I Inherit Money?

By Attorney Elizabeth Durnell

A few weeks ago, I met with Mary because her husband, Joe, was going into a nursing home.  She and her husband, Joe, had previously worked with our office and everything was in place for them to apply to get Joe’s bill paid by Medicaid.

Everything looked to be in order until Mary informed us that Joe would probably inherit around $200,000 from his mother, Ethel.  Being a beneficiary of a future inheritance is not a problem for Joe now, but it will be when Ethel passes away.

When Joe actually receives the money from Ethel’s estate, Joe will be kicked off of benefits and will lose a significant portion of the inheritance.

However, there is a solution to this problem.  The Medicaid code allows Ethel to set up a trust after her death for Joe. The trust is for Joe’s supplemental needs such as going to the movies, taking vacations, buying a TV or other electronic equipment, etc.  These needs are above and beyond what Medicaid pays.  Therefore, Ethel can set up a trust for Joe’s benefit that allows him to continue to receive Medicaid after her death, that protects the inherited assets in the trust from creditors (including the State) and gives Joe the opportunity to enjoy his inheritance.

These trusts must be set up to comply with very specific guidelines or they could cause more problems than they help. If this is something you are interested in setting up a trust for a disabled family member, please contact the attorneys at the Thom L. Cooper Co., LPA to discuss if this is an option for you.

Choosing the Right Type of Care For Your Parent

By Daneen Cline

You have been noticing changes in your mother’s behavior that have you concerned.  You have started calling her a few times a day, just to make sure she is ok.  You have increased your visits from once a week to every other day because you noticed that the house isn’t in the same state of cleanliness it has always been and that personal hygiene seems to be slipping as well.  You know that something needs to be done about this but you have no idea what to do.   Does this sound familiar?  Most of us will face this situation with our parents and very few of us will know how to handle it.  How do you decide what is the right amount of assistance? Maybe having someone stop in every day for a couple of hours to assist with basic housekeeping and personal care is enough, or maybe an Assisted Living Facility is the best place for mom to be.   And how can you even broach this subject with your mother, who has always been very independent?  And finally, can your mother afford to pay for the care she needs?

We are fortunate because we have the Internet at our disposal to help with the answers to all these questions.  We type a few key words into our favorite search engine and are rewarded with hundreds of websites that will assist us with this difficult decision.  Deciding which website to visit is almost as daunting as the problem that sent you to the Internet for the information.  You must be aware that some information on the Internet are not telling the whole story – for this, you should consider consulting an elder law attorney.

The following websites are ones that I have used often and found helpful. They cover a variety of topics including the types of care available, government agencies and the programs they offer, and an explanation of the different types of residential settings for seniors.

http://www.homecareohio.org/

http://www.ohioaging.org/

http://aging.ohio.gov/services/ombudsman/regional.aspx

http://www.proseniors.org/

For more information about programs that may be available to your parent and options to pay for them, contact our office.

Keep yourself organized: How to Deal with a Healthcare Crisis

By Jennifer Morningstar

Webster’s definition of organize is “to arrange by systematic planning and united effort”.  I like to think that having a system and making an effort helps keep my cases organized.  And it helps when our clients think the same way.  I realize that many times Mom, Dad or your spouse didn’t tell you where they keep their important documents, their bills, or even their identification.  So when it comes time to help them out in a crisis, you are now in the middle of “Hide and Seek”.

In planning ahead, it is always a good idea to let a loved one know where you keep your ‘stuff’.   There are several documents that you will need in a time of crisis, so why not be prepared now and save yourself the aggravation; you will already have enough to worry about.

Here are some items that you may need to get your hands on:  Social Security cards, health Insurance cards, military discharge records, deeds to properties, cemetery lot records, stock certificates, vehicle titles, bank statements, life insurance policies, tax returns, and any and all legal documents that have been created.

Of course, there will always be that one thing that is needed that you cannot find, but it will make life easier on yourself if you start getting this information in a location that can be found.  It’s pretty hard to win the game of Hide-and-Seek if you don’t’ even know where to start looking.

Worried about taking care of aging parents?

Over half of all Americans say they worry about taking care of their aging parents. Katie Couric says both parties should sit down and have an honest talk about the future.

Navigating Medicare and Medicaid options are mind-numbing and helping our parents live out their lives can be completely overwhelming. Don’t bare the financial burden of your parents medical expenses. A consultation with an Elder Law attorney can help you and your parents plan for the future.

You Don’t Have to Spend Down Your Life Savings to Pay for a Nursing Home

By Attorney Elizabeth Durnell

Screen shot 2009-12-17 at 1.27.42 PMA few weeks ago, Judy and Gary came into the office to discuss how to pay the nursing home bill they are anticipating for Judy’s father, George.  George has been slowing down and can no longer be cared for at home.  George’ doctor is recommending they place him in a nursing home.   George’s estate is close to $300,000, and he worked a lifetime to build it.  He wants it to go to his family, not the State of Ohio.

Here’s the problem:  Judy and Gary understand that an individual must have less than $1500 in assets to have their benefits paid.  Judy and Gary are worried that they must spend down all of George’s money for his care before Medicaid will begin to pay the bill, or they must keep George at home until all of his money is spent.

This is a common misconception in nursing home planning: you have to spend all your money before Medicaid will pay.

The main focus of my work at Cooper Elder Law involves nursing home planning.  I often meet with the families of clients who will need to make gifts in order to qualify for Medicaid benefits and share the same worries as Judy and Gary.

The good news is, there is hope for these families.  When a person makes a gift during the “look-back period,” which is the five years before a person is admitted to a nursing home, the person is placed on a Restricted Medicaid Coverage Period.  During the Restricted Period, Medicaid will not pay for the person’s room and board at the nursing home.  So, for George, this does not mean that he can’t live in a nursing home, it only means that he must pay privately for his care until the Restricted Period is over.

The Restricted Medicaid Period does not mean that you must pay for all expenses out of your pocket.   Medicaid may cover services such as emergency room visits, ambulance services, hospital stays, surgery and anesthesia, if medically necessary.  Medicaid may also pay for medical equipment such as wheelchairs, hospital beds, orthotics and prosthetics, diabetic supplies, canes, walkers and crutches, lifts, colostomy supplies and oxygen supplies.  Finally, although there are some limitations, the following services are available as well: doctors visits, lab testing and x-rays, occupational therapy, speech therapy, physical therapy and hearing services.  Prescription drug coverage may also be provided by Medicare Part D.

If you or a loved one develops a condition that may mean a nursing home is in your future, you should consult with an elder law attorney who can help you understand the rules that apply to Medicaid.  This is not a good choice for do-it-yourself.  You need to understand the complex rules that Medicaid has developed in order to protect the work of a lifetime.

What’s Going to Happen to Your IRA If you Have a Stroke or Accident and Go to a Nursing Home

Pretty strong image…Pretty big problem.  I guess you get the idea and you know I am right.

By: Thom L. Cooper

Certified Elder Law Attorney

Part 1:  Definition of theProblem:  IRA vs Catastrophic Illness:

roi_return_on_investment_analysisWe all stick our heads in the sand.  Who wants to think about this?  No one… but we must.  This is one of the biggest problems we are now facing in working with our clients in the area of elder law.

When I first started my elder law practice the wealth pattern of WWII vet era seniors was a home, savings, investments and a significant defined benefit pension every month from their employer and… no IRAs or qualified plans .  This wealth pattern has now changed as we move to our current retirees.   Now most of retirees still have a home, but instead of savings and a substantial pension,  they now have a significant IRA with a minimal pension and modest investments and savings … especially when compared to the size of their IRAs and qualified plans.

This is a very significant change from a planning perspective.  While homes and non IRA type investments can usually be placed in trusts to protect them from being ravaged by a catastrophic illness, the IRAs and qualified plans can not be placed in trusts without devastating tax consequences.  In addition, as everyone knows,  any time you take funds from a qualified plan you pay significant tax.  Finally most seniors feel that there IRAs are their “fall back money” to keep them from grocery shopping in the cat food aisle.

We believe the solution is the protection of the IRA by leveraged collateral funds with associated protected trusts.

What in the world does that mean?  I will begin to explain in our next blog “Part 2 The IRA Protector Trusts:   A Solution for the Problem of  IRA vs Catastrophic Illness”

Gracious Dependence: Do We Have What It Takes?

by guest blogger Gail McConnon
imgEvery year medical science comes up with new ways to help us live longer – for good or not so much. We seem to think that’s what we want, don’t we?

But what are we really getting in the bargain for longer life . . and do we have what it takes to graciously accept what we get?

Where am I heading, you ask? I’m inviting you for a short stroll down the road of scientifically-assisted longevity, and the dependence that’s bound to follow . . upon family . . friends . . strangers.

I’m asking you to take a quick look at how “prepared” you are to become dependent on others to care for you while you’re doing all that aging through all the extra years you asked science to give you. You certainly don’t think extra time comes without a price?!

And even if you don’t buy into the scientific enhancement of your years, you know you can’t escape the indulgent lifestyle you’ve been leading all these years.

Let’s face it: If science doesn’t kill you, your habits most likely will.

In any case, chances are fairly good that few of us will make it to the end of our years as the independent creatures we see ourselves to be. Most of us are going to end up dependent – to some degree or other – on the good will and caring of someone else.

Start Getting Acquainted With Dependence

Be it short of long term . . assisted living . . LTC . . with family involvement or not . .it’s going to behoove us to get acquainted the better side of dependence.

What’s that?! What better side?! I’m sorry for the confusion. What I’m saying is that we’ll be doing ourselves a real favor by learning to open the gifts of gracious dependence (i.e., discovering the grace to be gained in being dependent on others).

Okay, you think I’m loopy, right? That’s fair. After all, everything up through life’s first half is focused on you as an individual . . standing on your own two feet . . making a name for yourself . . being in total control.

Now, here I am, telling you the real grace to be gained in life’s second half comes from the inside.

Let’s face it: Unplanned and unplanned for things happen as we get older.

The lifestyles we flaunted up till now are starting to turn on us.

The multitude of stresses we swallowed as we climbed that corporate or professional ladder . . and raised families . . and piled our plates higher and higher with the stuff we had no business biting into a few years back . . have been waiting patiently all this time to teach us the lessons we pretended we’d never have to learn.

Let’s be honest with ourselves, though. Those lessons are starting to come home. And some of us – or at least some of our middle-aged friends and family members – are learning hard lessons as bodies and finances and marriages and all the rest start to break down.

And even though we watched as our parents aged through life’s second half, we kept believing we were immune. Or, maybe we just kept wishing we were immune.

While it is never too early to be prepared, putting things off can have very unintended results that can cause serious anxiety, family feuds, and significant monetary losses. Seek out the advice from an Elder Law Attorney today and make sure your goals and your plan are in sync so you can rest assured that you are prepared!

Nursing homes are not the only option

By Jennifer Morningstar

Elderly manIn working with many of our clients, they are sometimes surprised to learn that there are benefits that help pay for in-home care. Even though a person may need nursing needs or skilled therapy, it does not mean that they have to go to a nursing home.  Home and Community-Based Waivers are programs of in-home and community care, helping those who are eligible to remain at home instead of a hospital, a nursing home, or a facility for those with developmental disabilities.

Many times in talking to clients they are very worried about sending Mom, Dad, Husband, Wife or Child to a nursing facility. With this program, there may be ways to help keep them in the comforts of home.  Let us know if you would like more information or to find out if you may be eligible for this program.

Asset Protection Account

Jim Zifer talks about an Asset Protection Account that lets you retain control of your money that the nursing home can’t touch.



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