QUESTION
How can I do protect her savings just in case of her someday entering a nursing home?
Asked on Jun 12th, 2013 on Estate Planning - Missouri
More details to this question:
My mom is 85. She has a healthy savings and she has direct deposit in her checking for her SS check.
14 ANSWERS
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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This is too complex a question to answer in this kind of forum. Your mother needs to meet with an elder care attorney and share all of the facts of her situation, including her objectives.
Answered on Jun 14th, 2013 at 5:29 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The savings of your mother are for her during life care, and you are not entitled to an inheritance, which you are alluding. So be prepared to use her money for nursing home care.
Answered on Jun 14th, 2013 at 5:29 AM
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That is a complex question. Your mother should meet with an estate planning attorney to address options and risks in light of her specifics.
Answered on Jun 14th, 2013 at 5:28 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You should get the bulk of the money out of hr name. You can set up a trust, but you need to consult an estate planning and elder law attorney.
Answered on Jun 13th, 2013 at 12:32 PM
Thomas Edward Gates
There needs to be five years of separation between a financial transaction and applying for government benefits. Consider setting up a irrevocable trust and gifting to beneficiaries (allowed to gift $13,000 to any person each year).
Answered on Jun 13th, 2013 at 11:21 AM
You could consider a Medicaid trust for her.
Answered on Jun 13th, 2013 at 11:01 AM
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It may be a little late to start Medi Cal planning, but you will need to go to an estate planning attorney to go over the facts and see if anything can be done. Generally there is a look back period if you make transfers close to the need for medical services.
Answered on Jun 13th, 2013 at 10:38 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Anything you transfer out of your mother's name when considering the possibility of some day needing a nursing home and having to apply for Medicaid for her care would be considered part of her "estate" for 5 years - 5 year look back period. There are several things you can do to spend down her money and it would be wise to check the medicaid regulations on that.
Answered on Jun 13th, 2013 at 10:03 AM
You can have an asset protection trust set up by an attorney in your state. The trust will need to be designed to allow for a 36 or 60 month look-back for Medicaid purposes, but you can preserve some of her assets quickly.
Answered on Jun 13th, 2013 at 10:03 AM
Your mother should consult with an attorney specializing in elder law and medicaid planning.
Answered on Jun 13th, 2013 at 10:02 AM
Estate Planning Attorney serving Torrance, CA
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The Law Office of Kelvin Green
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The law was designed for people to use their savings to pay or long term care prior to having it paid by the taxpayer. There is a look back period so even if money is transferred and protected, there can be periods of ineligibility. There are some special trusts than can help. You need to see an attorney that understands Medicaid rules
Answered on Jun 13th, 2013 at 8:47 AM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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The problem is that if at some time in the future she applies for Medicaid to cover nursing home expenses, she will be asked if she has disposed of any of her property during the previous five years. If she did, that could result in disqualification. Have your mother speak to an attorney who specializes in Medicaid planning. It is a complex area of law.
Answered on Jun 13th, 2013 at 8:47 AM
Unless you mother is determined to be legally incompetent, she can do as she wishes with her savings. However, if someone is taking advantage of her generousity or she doesn't seem to be able to make reasonable decisions about her spending, you can talk to her about allowing you to be included on her account and to pay her bills, etc. If she is no longer capable of making reasonable financial decisions, you can petition a court to name you or someone else to become her conservator and take over all resposibility for her financial assets.
Answered on Jun 13th, 2013 at 8:47 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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You can have a trust set up for your mother. You can't do this without discussing with her, however. While there is no "magic" involved (taxes still have to be paid, you can't avoid the "look-back" rules for Medicaid) but a trust can take care of her assets if she becomes incapacitated. This will avoid the necessity of opening a conservatorship estate in probate court (a conservator is the "guardian of the estate" of an incapacitated person. If you had to have a conservator appointed the proceeding and subsequent court mandated accountings could be costly and somewhat inflexible.
Answered on Jun 13th, 2013 at 8:46 AM