Medicaid Planning

July 23, 2012

New Wave of Lawsuits May Force Children to Pay for Elderly Parents’ Nursing Costs

Many of our clients and readers in Florida are caregivers of elderly parents; they have chosen to take responsibility for their parents–whether it be physical responsibility, financial, or other. But what if instead of making that choice, you had responsibility for your aging parents thrust upon you? This is exactly what happened in the case of Health Care & Retirement Corporation of America v. Pittas, recently brought before the Pennsylvania appeals court.

This particular case states that “On or about September 24, 2007, after completing rehabilitation for injuries sustained in a car accident, Appellant’s [John Pitta’s] mother was transferred to a HCR facility for skilled nursing care and treatment. Appellant’s mother resided in the facility and was treated by HCR until March of 2008. In March of 2008 Appellant’s mother withdrew from the HCR facility and relocated to Greece.”

Following Pittas’ mother’s relocation, a large portion of her bill at the nursing home went unpaid. Mr. Pittas’ mother applied to Medicaid to cover her care, but while that application was still pending, the nursing home sought to hold Mr. Pittas responsible for the debt under the state’s filial responsibility law. Although the case went to an arbitration panel which initially ruled in favor of Mr. Pittas, eventually the Pennsylvania trial court ruled in favor of the nursing home, holding Pittas responsible for nearly $93,000 of his mother’s nursing expenses.

July 11, 2012

Elder Law Update: States That Could Make Children Pay for Dad’s Care

by David M. Goldman

Unpdaid long-term care bills are increasing and becoming more of a problem in many states. All 50 States have statutes that obligate adults to care for children or other family members; if your parent lives in one of 29 states, you could be held responsible for your parents unpaid long-term care bills. What? How could this be? are the typical reactions to many living in these unfortunate states.

Katherine Pearson at Penn State Law School has written a paper on Fillal Support Laws and the enforcement Practices for laws requiring adult children to pay for indigent parents.

Her abstract states:

June 22, 2012

Florida Elders can Improve Memory through Exercise

by Patricia Davis

Jacksonville Elder Law Lawyers keep up with legal matters as well as non-legal matters when it comes to advocating and educating the elderly. A recent article published in the Times of India discusses a study conducted by scientists at the University of South Florida and the University of Shanghai.

The findings of an 8 month controlled trial, compared a group of Chinese seniors who practiced Tai Chi (a Chinese form of self-defense that has evolved into a graceful exercise) 3 times a week to a group with no intervention. The results of the study found increases in brain volume and improvements on tests of memory and thinking in those seniors who practiced Tai Chi three times a week. The same trial also showed increases in brain volume and more limited cognitive improvements in a group that participated in lively discussions 3 times per week over the same period.

This was the first trial to show that a less aerobic form of exercise, Tai Chi, as well as stimulating conversation, led to increases in brain volume and improvements on psychological tests of memory and thinking.

May 10, 2012

Adding Kids To Deeds Can Place Florida Homestead in Jeopardy to Creditors

by David M. Goldman

Joseph Percope has written an article The Impact of Co-ownership on Florida Homestead in the Florida Bar Journal that discusses the tree kinds of homesteads defined in a 1997 Florida Supreme Court case: The tax exemption; The Protection from Creditors; and The restrictions on alienation of homestead property in Florida.

While most are primarily concerned with their tax breaks, as a Florida Estate Planning Lawyer we often deal with the second two more often in our planning. We see families attempting to avoid probate by adding kids on to deeds all the time. We also see parents who own part of their children’s homes. The problem begins when in either of these situations one or more of the owners does not live in the home. The home or at the ownership of the person not living in the home is subject to the claims of their creditors.

When no ownership percentage is specified, Florida will apply equal percentages of ownership to each person named on the deed. If a single person adds their child onto their deed as joint tenants with rights of survivorship, 50 percent of the equity in the home will be exposed to the creditors of the child who is not living in the home.

May 4, 2012

Florida Enhanced Life Estate Deed and Medicaid Planning

by David M. Goldman

A Florida Enhanced Life Estate Deed (sometimes called “The Lady-Bird Deed” is a tool used by Florida Estate Planning Attorneys, Florida Elder Law Attorneys, and other by Florida Lawyers to preserve the homestead for the benefit of the family and avoid a Probate in Florida. Upon the death of the homeowner’s the property will pass to the people designated without the need for a costly probate process in much the same way as a bank account with a beneficiary designation.

Jacksonville Duval Clay Orange Park Why Use an Enhanced Life Estate Deed?

The Florida Enhanced Life Estate Deed provides a mechanism to bypass the probate process and thus the creditors. Under this document, the husband and/or wife retain a Life Estate Interest under which he or she retains the right to live on the property for their life. Unlike a Life estate, the husband and/or wife retain the right to sell, mortgage, convey, gift, or cancel the remainder interest at any time during their life. If there is any property interest upon the last to die of the husband and/or wife, the remainder will pass in fee simple to the designated individuals named in the deed.

April 27, 2012

Florida Nursing Home Penalty Divisor Update 2012 by DCF

by David M. Goldman

It has been many years since the regional divisor has been updated. For the last several years the penalty period was calculated using an outdated nursing home cost of $5000. As of now, the divisor has been raised from $5000 to $6880 in Florida (Florida Administrative Code)

What does this mean? If one does property planning, they can give away $6880 and only have a 1 month penalty. This becomes important when doing planning for individuals who have nursing home exposure.

This will significantly increase the amount of money most people could save by doing elder law planning in Florida. As you age it is important to consider both Florida Estate Planning and elder law when structuring your plan.

March 30, 2012

Florida Makes Power of Attorney Documents More Dangerous

by David M. Goldman

With the recent changes to the Florida Statutes, it is even more dangerous to use Powers of Attorney documents created by online systems or found in forms books. Not only is there a big risk that they will not comply with the new Florida laws and be worthless, but if they are valid, you run a big risk of handing someone a blank check. YES that is what many are calling the powers contained in the new Florida Durable Powers of Attorney act.

While those using a POA are supposed to act in a fiduciary capacity, when they do not, someone has to complain about it or nothing will be done. While under Florida’s Elder Law abuse statutes, anyone may complain about the actions of another who is over the age of 55, those under 55 who grant powers of attorney have little recourse when their power of attorney is abused without their knowledge.

More Jacksonville Estate Planning Lawyers are creating systems to accomplish the springing powers that have recently been stripped from the statutes.

March 5, 2012

Attempt to Avoid Probate Earns Medicaid Applicant Penalty Period

by David M. Goldman

Often in an attempt to avoid a relatively small probate fee, individuals can create huge penalty periods and taxable issues for themselves. Take for instance, a woman in New York who, two years before applying for Medicaid, transferred money from her account to an account with a co-owner. Transferring individually owned funds to an account with joint tenants is a common way to avoid a Florida Probate.

While her estate planning attorney seems to have given the advice, he was not aware of the problems that estate planning techniques to avoid probate can have on Medicaid eligibility.

Not only can transfers like this have problems for the individual making the transfer, but they can also create problems for the beneficiary or the new co-owner who will now have additional assets in their name, that may disqualify them from government benefits like Medicaid.

February 27, 2012

Elder Law Lawyers look to Alzheimers Research

by Patricia Davis

As Jacksonville Elder Law Lawyers, we are always looking for the most effective and least restrictive ways in which to serve the needs of our Jacksonville elderly. We keep current of the Florida statutes and the numerous Florida cases which interpret matters involving Florida’s senior citizens.

Elder law encompasses many aspects, including estate planning, guardianship, medicaid issues, and of course, health care issues. As Florida Elder Law Attorneys, we also look to various research and articles throughout the nation which focuses on issues related to aging.

Recently an interesting article caught our attention dealing with coconut oil and it’s effect on those suffering with dementia and Alzheimers. We want to share information we learn of that may have a positive impact on your lives. This article addresses alternative medical treatment.

November 30, 2011

2012 Florida Mediaid Eligibility Requirements

by David M. Goldman

The eligibility requirements for Medicaid have changed for Florida as of 1/1/2012. There were changed in the income criteria, maximum amount of assets, and maximum equity in your homestead property.

Florida Medicaid Income Limits as of 1/1/2012.

The Applicant’s income limits have increased from $2022/ month to $2094/month. If the applicant for Medicaid has income in excess of $2094, they may use a Qualified Income Trust or Miller Trust to help the applicant qualify for Florida Medicaid Benefits under the Medicaid Asset Test.