Wealth Preservation, Trusts and Estates

The Family Caregiver Exception is one opportunity available to protect the family home from nursing home spending. Generally, there is a 5 year ineligibility for Medicaid qualification that results from a transfer of the family residence to a child. However, there is no penalty for a transfer of a primary residence if a son or daughter lived with mom or dad for the two years preceding mom or dad moving to a nursing home. Further, the child must prove that he or she provided care that allowed them to stay at home and prevented mom or dad from going to a nursing home during that two year period.

I recently answered a question posed by a reader on AVVO regarding this family caregiver exception and thought you might like to take a look at that commentary here. Here is the relevant federal statutory provision 42 U.S.C. §1396 p (C) (2)(A)(iv). This is an important provision and could provide significant economic protection if utilized properly.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Medicaid Asset Protection, Nursing Home or Elder law case to determine the appropriate planning for you and your family.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. his a full service law firm with offices in Malvern, Phoenixville, West Chester and serving surrounding areas such as Royersford, King of Prussia, Wayne, Media, Paoli, Exton, Downingtown, Norristown and other towns in Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Elder Law: Medicaid Asset Protection Trust Series.  Many of our clients want to guard against losing large portions of or even their entire estate to the costs of long term nursing care.  They recognize that the

ever rising cost of nursing care coupled with increased life expectancies could result in significant expenditure of estate assets.  Clients cite the desire to preserve assets, protect a spouse and pass an inheritance to their children as overriding rationale for Medicaid Asset Protection Planning (MAPP).  As many know, the sooner you start planning, the greater the likelihood you will be able to protect significant assets.

During the planning process, we will typically suggest using one of the irrevocable trusts in our Medicaid Asset Protection Trust Series.  The trusts can be written to be flexible but, unlike outright gifts, the gifts made to the irrevocable trust will be protected from the creditors, spending habits and divorce of the future beneficiaries.  Please read this information on the use of the Medicaid Irrevocable Trust by a fellow elder law attorney in Virginia.  The Pennsylvania Medicaid laws will apply in much the same way, but I thought it would be good for you to see that other attorneys in other states are employing similar strategies.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Medicaid Asset Protection, Nursing Home or Elder law case to determine the appropriate planning for you and your family.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. has offices located in Malvern, Phoenixville, West Chester Offices also serving surrounding areas such as King of Prussia, Media, Kennett Square, Typical Counties Served:  Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Annuities have long had a role in Medicaid and nursing home asset protection planning in PA and in other states. There are planning opportunities that allow a husband and wife to shelter a portion of the family assets so that the community spouse (non-nursing home spouse) can remain at home and have greater financial freedom. The case referenced below is a favorable opinion for the Medicaid applicant and should increase the likelihood that certain annuities will be successful Medicaid nursing home planning tools for married couples.
In Weatherbee v. Richman, 595 F. Supp. 2d 607 (W.D. Pa. 2009), the U.S. District Court for the Western District of Pennsylvania reversed the denial of Medicaid benefits to a nursing home resident (“institutionalized spouse”), holding that the income from an irrevocable, non-transferable, non-assignable, single premium, immediate annuity payable to the spouse of the nursing home resident (“community spouse”) was protected under federal law, specifically the Medicare Catastrophic Coverage Act of 1988 (“MCCA”). MCCA provides that the community spouse’s income is completely protected and does not affect the Medicaid eligibility of the institutionalized spouse.
Please call Douglas L. Kaune, PA Lawyer 610-933-8069 for additional information about this case and to discuss Medicaid and nursing home planning opportunities it presents for you.
Wills * Trusts * Probate * Elder Law * Estates * Estate Planning * Asset Protection Planning
Malvern, Phoenixville, and West Chester Law Offices Chester, Montgomery, Delaware, Philadelphia, Berks and Bucks County PA

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