Estate Recovery Presentation
-
Upload
haans -
Category
Health & Medicine
-
view
232 -
download
0
Transcript of Estate Recovery Presentation
ESTATE RECOVERY IS HERE: HOW TO HELP PROTECT YOUR PATIENTS AND THEIR FAMILIES
P. Haans Mulder, JD, MST, CFP®
Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
Background• Attorney and Partner at Cunningham
Dalman, P.C.• Have a Masters in Tax (MST), CFP®
and specialize in estates/elder law and business planning
Serving the Holland area since 1900
Background• Cunningham Dalman, P.C. has been serving
the lakeshore since 1900• We have 15 attorneys specializing in all
areas of the law
Serving the Holland area since 1900
Overview• Discuss the Medicaid rules and process• Cover the what, who, when, where, and
how’s of Medicaid…. • What is estate recovery and why is it
important to your patients and their families
Serving the Holland area since 1900
Overview• What types of assets does estate
recovery apply to• How it might impact your business• How do your patients and their families
protect against it
Serving the Holland area since 1900
What is Medicaid?• It is a state and federal program that
pays for medical treatment (including long term care)
• Oftentimes confused with Medicare
Serving the Holland area since 1900
When does Medicaid apply?• Historically, it only paid for nursing
home care • In certain counties (that have the MI
Choice Waiver program), it will pay for care in someone’s home or in an assisted living facility
Serving the Holland area since 1900
Who does Medicaid apply to?
• Applies to people who are 65 years or older, blind, or disabled
• Must satisfy the medical requirements (level of care assessment)
• Need to meet the income and asset tests
Serving the Holland area since 1900
Who does Medicaid apply to?
• A patient’s monthly income cannot exceed the monthly cost of the nursing home ($6-7,000 in this area)
• For the Waiver program, a patient’s income (not a spouse) must be less than $2,022/month
Serving the Holland area since 1900
Who does Medicaid apply to?
• The asset test requires that a single person cannot have more than $2,000 in countable assets
• A patient can keep his or her home (as long as its not in a trust) as well as a vehicle
Serving the Holland area since 1900
Who does Medicaid apply to?
• Asset test allows a married couple to keep their home (again, if it’s owned properly), a vehicle, and one-half of their other assets (up to a maximum of $109,560)
Serving the Holland area since 1900
What is estate recovery?• It is a process that the State of Michigan
gets reimbursed for the Medicaid services it has paid for
• It does not put a lien (i.e. Medicaid lien) on exempt assets during a patient’s life or force a sale
Serving the Holland area since 1900
What is estate recovery?• It applies to people age 55 years or
older who have received Medicaid (i.e. long term care) services
• Covers Medicaid services back to September 30, 2007
Serving the Holland area since 1900
What assets does estate recovery apply to?
• It only applies to assets that have to be probated
• That has the potential to include all assets (house, bank accounts, investments, vehicle, personal property, etc.)
Serving the Holland area since 1900
What assets does estate recovery apply to?
• But…the only assets that are typically left are: bank account, personal property (including vehicle), and a patient’s house
• The house will be the most significant asset, but do not lose sight of the others
Serving the Holland area since 1900
What effect might this have on your business?
• Estate recovery might incentivize patients to stay at home longer
• Patients might be more likely to sell their house and have more liquid assets for their care
Serving the Holland area since 1900
How do people protect against estate recovery?
• The most effective way to protect the house is with a “ladybird deed”
• The house remains an exempt asset during the Medicaid recipient’s life
• The costs and hassle of probate are avoided
Serving the Holland area since 1900
How do people protect against estate recovery?
• What about other assets besides the house
• The patient should make sure those assets avoid probate (i.e. having a trust named as owner, naming a beneficiary, etc.)
Serving the Holland area since 1900
Some other things to be concerned about
• When a single person is on Medicaid, he or she can keep the house
• However, he or she will not be able to use Social Security and other income to pay the house expenses
Serving the Holland area since 1900
Some other things to be concerned about
• This typically means that a child or beneficiary must pay these expenses
• Children should protect their right to be reimbursed by executing and recording a mortgage against the house
Serving the Holland area since 1900
Some other things to be concerned about
• This gives a child’s reimbursement claim higher priority than the State of Michigan’s estate recovery right
• A child will get paid when the house sells
Serving the Holland area since 1900
Some other things to be concerned about
• You should make sure the Medicaid recipient has signed a financial (also known as a general durable) power of attorney
• That way, the agent can execute the mortgage
Serving the Holland area since 1900
This is subject to change so you have to stay informed…
Serving the Holland area since 1900
Stay informed by receiving our monthly newsletter (register by emailing [email protected])
Serving the Holland area since 1900
Questions……
Serving the Holland area since 1900
Thank YouP. Haans Mulder, JD, MST, CFP®Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]@holland-law.comwww.holland-law.com
Serving the Holland area since 1900