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Elder Law / Medicaid Planning

We focus on asset preservation, eligibility for Medicaid, and long-term care planning, ensuring you or your loved ones receive the care needed without depleting your assets. Our services include strategic asset reallocation, trust creation, and guidance through the Medicaid application process, tailored to protect your wealth while securing eligibility for benefits. Our experienced team is dedicated to navigating the complexities of elder law, providing peace of mind that your financial health and care needs are expertly managed. With our Elder Law and Medicaid Planning, secure your legacy and ensure a comfortable future with the care and support you deserve.

The Cost Of Long-Term Care In Kansas

Your doctor tells you life altering news, “You need Long Term Care and Medicare won’t pay for it.” You must either pay out-of-pocket or be broke to qualify for government assistance. The average cost of long-term care in Kansas is nearly $8,000 per month. Giving away your assets to qualify for government help can actually disqualify you from the government assistance you seek. Advanced Legal Planning can help you navigate complex asset protection rules and laws to qualify for Medicaid while preserving assets you are legally allowed to protect.

Will I Need Long Term Care?

The current average monthly cost of staying in a Long Term Care facility in Kansas was $8,000 in 2022. However, the cost of Long Term Care keeps rising by more than the rate of inflation.

Almost a 70% chance. If you are turning 65 today, you have nearly a 70% chance of needing some type of Long Term Care services and supports in your remaining years. (U.S. Department of Health and Human Services);
53% of all women. Greater than half of all women will require Long Term Care in their lifetimes. (AARP Public Policy Institute)
47% of all men. Almost half of all men will require Long Term Care in their lifetimes. (AARP Public Policy Institute)
20% longer than 5 years. On average, women are in Long Term Care for 3.7 years while men only remain in care for 2.2 years. However, of those receiving care, 20% need care for longer than five years. (LongTermCare.gov – 2018)

Will Medicare Pay For Long Term Care?

Limit On Services – Medicare does not pay for non-skilled assistance with “Activities of Daily Living” (ADL). Assistance with activities of daily living make up the bulk of the services received in a facility. ADLs not covered by Medicare include:

Maximum of 100 days – Even if a person receiving rehabilitation services is still progressing, the maximum amount of time Medicare will pay for care is 100 days.
Average of 22 days – Medicare will stop paying when they patient has recovered or if they stop improving. On average Medicare will only authorize payment for 22 days

Transferring – Help getting into our out of bed or a chair, including a wheelchair, is not covered by Medicare.
Toileting – Help getting onto or off of the toilet and assisting with toileting hygiene is not covered by Medicare.
Bathing – Help bathing, showering, and other assistance needed with personal hygiene is not covered by Medicare.
Dressing – Help to get dressed or undressed is not covered by Medicare.
Eating – Help preparing food and eating is not covered by Medicare.
Ambulation – Help walking or climbing stairs is not covered by Medicare.

What Are My Options?

Without the assistance of Medicare, the monthly expense is difficult for most families to cover. There are three options to pay for Long Term Care expenses.

Long Term Care Insurance

Long Term Care Insurance is designed to pay for chronic medical conditions. These policies pay a daily rate.

Cost – According to the 2020 Price Index, a healthy 55 year old male should expect to pay about $1,700 per year for a policy that offers benefits of $164,000. If unused, those benefits compound over time to offer $386,500 by the time he has reached 85 years of age.
Tax Deductions – If you itemize your deductions, Federal and Kansas tax laws allow a deduction for part or all of your Long Term Care insurance premiums as medical expenses.
State Partnership Program – Having a qualifying Long Term Care policy enables you to apply for Medicaid under modified rules. This allows you to keep more resources and still qualify for Medicaid.

Private Pay

Without the help of any insurance, an individual is required to pay for Long Term Care from their own resources. In Kansas, the average expense will be near $100,000 per year. Bank accounts can drain quickly at this rate. One way individuals sometimes raise the needed funds is to get a reverse mortgage on the family home.

Many people believe that they are required to use all of their resources to pay for this care until they are poor enough to qualify for Medicaid. Advanced Legal Planning may be able to help you qualify more quickly while preserving a significant percentage of your assets.

Medicaid

Medicaid is a needs based benefit to pay for medical care. If you qualify, Medicaid can pay for Assisted Living, Home Health Care, or a Skilled Nursing Facility. Whether someone needs care immediately or there is time to plan, Advanced Legal Planning works with individuals and families to design plans that

Protect the most assets,
Qualify for Medicaid as quickly as possible, and
Allow for the best care to be provided to loved ones in need of Long Term Care.

How Does Medicaid Planning Work?

The laws surrounding Medicaid are extremely complex. It is a federal program which each state manages with some differences. Because Advanced Legal Planning knows how to work within the rules, surprising and beneficial things can be accomplished. The following cases illustrate what is possible.

Case #1

Pauline Has Been Diagnosed With Dementia. She Wants To Be Able To Pass Something Along To Her Children. She Comes To Advanced Legal Planning For Help.

Pauline’s Income – $1,800 Per Month

Pauline’s Assets – $150,000

Pauline’s Cost Of Long Term Care – $8,300 Per Month

Instead Of Waiting For Pauline To Spend Her $150,000 On Long Term Care, Advanced Legal Planning Assists Her With A Gifting Strategy That Works Within The Medicaid Rules.

Once The Plan Is Put Into Place, Pauline Is Able To Qualify For Medicaid Immediately. There Will Be A Period During Which Medicaid Will Not Pay, But The Plan Covers That. Pauline Was Able To Protect A Little Over Half ($75,848) Of Her Assets And Pass Them To Her Children.

Case #2

Arthur And Mary Are Married. Arthur Has Just Been Diagnosed With Dementia. He Wants To Make Sure Mary Has All She Needs When He Is Gone. They Come To Advanced Legal Planning For Help.

Arthur’s Income – $2,000 Per Month

Mary’s Income – $1,500 Per Month

Joint Assets – $300,000

Arthur’s Cost Of Long Term Care – $8,500 Per Month

Advanced Legal Planning Helps Mary And Arthur Create A Plan Where Mary Gets To Keep $125,000 Of Assets. An Additional $157,000 Of Assets Are Turned Into An Income Stream That Will Pay The $157,000 Back To Mary In 36 Months. Arthur Is Immediately Qualified For Medicaid Without Paying The Long Term Care Facility And Without Any Medicaid Penalty Period.

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FAQS

What is estate planning, and why is it important?

Estate planning is the process of structuring your assets to ensure they are distributed according to your wishes after your passing or incapacitation. Estate Planning helps you minimize taxes, avoid legal disputes, provide for your loved ones, and maintain control over your financial affairs. Proper Estate Planning can also protect your beneficiaries from creditors and other potential risks.

What documents are typically included in an estate plan?

Key estate planning documents include a will, trusts, a financial power of attorney, a healthcare power of attorney, living will, beneficiary designations, and guardianship designations. Each document serves a specific purpose and can be customized to suit your unique circumstances and goals.

How often should I review and update my estate plan?

It is generally recommended to review and update your estate plan every 3 to 5 years or after significant life events such as marriage, divorce, birth of a child, death of a beneficiary, or substantial changes in your assets or financial situation. Regular reviews ensure that your estate plan remains current and accurately reflects your wishes.

One way to make sure your plan is up to date is to join a maintenance program. A maintenance program assures your plan is being reviewed regularly and gives easy access to an attorney if you have any questions or need any changes.

What happens if I die without a will or estate plan in place?

If you pass away without a will or estate plan, your assets will be distributed according to your state’s “intestacy ” laws, which may not align with your preferences. This can lead to family disputes, increased legal expenses, and increased hardship for your loved ones. It is crucial to have a well-crafted estate plan in place to ensure your wishes are honored.

Can I create my own estate plan, or should I consult with an attorney?

While it is possible to create your own estate plan, working with an experienced estate planning attorney is highly recommended. An attorney can help you navigate complex legal requirements, identify potential issues, and create a customized plan that addresses your unique circumstances and goals. This ensures that your estate plan is effective and legally sound. This provides peace of mind for you and your loved ones.

What is the difference between a revocable trust and an irrevocable trust?

A revocable trust is a flexible legal arrangement that allows you to maintain control over your assets during your lifetime and make changes to the trust as needed. Upon your death, the trust becomes irrevocable, and assets are distributed to your beneficiaries.

An irrevocable trust, on the other hand, is a permanent arrangement that cannot be altered or revoked once established. Irrevocable trusts offer greater asset protection and tax benefits but require you to relinquish control over the assets placed in the trust. An experienced Estate Planning attorney can create “some” flexibility to an irrevocable trust while maintaining its benefits.

How can elder law and Medicaid planning help me and my family?

Elder Law and Medicaid Planning involve navigating the complexities of aging, long-term care, and government assistance programs. By working with an experienced attorney, you can develop a strategy to secure quality care, preserve your assets, and expedite your eligibility for Medicaid benefits. This process can help alleviate financial burdens and provide peace of mind for you and your family.

What is special needs planning, and why is it important?

Special needs planning is the process of creating a comprehensive plan to support a loved one with special needs, ensuring their long-term well-being and financial security. This can involve establishing a special needs trust, selecting appropriate guardians, and identifying government benefits and resources. Proper planning can help your loved one maintain their independence, quality of life, and access to essential support services.

What is the role of a trust administrator, and what are their responsibilities?

A trust administrator, also known as a Trustee, is responsible for managing and distributing trust assets in accordance with the terms of the trust agreement. Their duties may include investing assets, paying taxes, maintaining records, communicating with beneficiaries, and addressing any legal or financial issues that arise. Trust administration requires a thorough understanding of fiduciary responsibilities and trust laws to ensure compliance and protect the interests of the beneficiaries.