Estate Recovery Presentation

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Estate Recovery Presentation

  1. 1. ESTATE RECOVERY IS HERE: HOW TO HELP PROTECT YOUR PATIENTS AND THEIR FAMILIES<br />P. Haans Mulder, JD, MST, CFP®<br />Cunningham Dalman, P.C.<br />321 Settlers Road<br />Holland, MI 49423<br />(616) 392-1821<br />phmulder@holland-law.com<br />
  2. 2. Background<br />Attorney and Partner at Cunningham Dalman, P.C.<br />Have a Masters in Tax (MST), CFP® and specialize in estates/elder law and business planning<br />Serving the Holland area since 1900<br />
  3. 3. Background<br />Cunningham Dalman, P.C. has been serving the lakeshore since 1900<br />We have 15 attorneys specializing in all areas of the law<br />Serving the Holland area since 1900<br />
  4. 4. Overview<br />Discuss the Medicaid rules and process<br />Cover the what, who, when, where, and how’s of Medicaid…. <br />What is estate recovery and why is it important to your patients and their families<br />Serving the Holland area since 1900<br />
  5. 5. Overview<br />What types of assets does estate recovery apply to<br />How it might impact your business<br />How do your patients and their families protect against it<br />Serving the Holland area since 1900<br />
  6. 6. What is Medicaid?<br />It is a state and federal program that pays for medical treatment (including long term care)<br />Oftentimes confused with Medicare<br /> <br />Serving the Holland area since 1900<br />
  7. 7. When does Medicaid apply?<br />Historically, it only paid for nursing home care <br />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<br />Serving the Holland area since 1900<br />
  8. 8. Who does Medicaid apply to?<br />Applies to people who are 65 years or older, blind, or disabled<br />Must satisfy the medical requirements (level of care assessment)<br />Need to meet the income and asset tests<br />Serving the Holland area since 1900<br />
  9. 9. Who does Medicaid apply to?<br />A patient’s monthly income cannot exceed the monthly cost of the nursing home ($6-7,000 in this area)<br />For the Waiver program, a patient’s income (not a spouse) must be less than $2,022/month<br />Serving the Holland area since 1900<br />
  10. 10. Who does Medicaid apply to?<br />The asset test requires that a single person cannot have more than $2,000 in countable assets<br />A patient can keep his or her home (as long as its not in a trust) as well as a vehicle<br />Serving the Holland area since 1900<br />
  11. 11. Who does Medicaid apply to?<br />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)<br />Serving the Holland area since 1900<br />
  12. 12. What is estate recovery?<br />It is a process that the State of Michigan gets reimbursed for the Medicaid services it has paid for<br />It does not put a lien (i.e. Medicaid lien) on exempt assets during a patient’s life or force a sale <br />Serving the Holland area since 1900<br />
  13. 13. What is estate recovery?<br />It applies to people age 55 years or older who have received Medicaid (i.e. long term care) services<br />Covers Medicaid services back to September 30, 2007<br />Serving the Holland area since 1900<br />
  14. 14. What assets does estate recovery apply to?<br />It only applies to assets that have to be probated<br />That has the potential to include all assets (house, bank accounts, investments, vehicle, personal property, etc.)<br />Serving the Holland area since 1900<br />
  15. 15. What assets does estate recovery apply to?<br />But…the only assets that are typically left are: bank account, personal property (including vehicle), and a patient’s house<br />The house will be the most significant asset, but do not lose sight of the others<br />Serving the Holland area since 1900<br />
  16. 16. What effect might this have on your business?<br />Estate recovery might incentivize patients to stay at home longer<br />Patients might be more likely to sell their house and have more liquid assets for their care<br />Serving the Holland area since 1900<br />
  17. 17. How do people protect against estate recovery?<br />The most effective way to protect the house is with a “ladybird deed”<br />The house remains an exempt asset during the Medicaid recipient’s life<br />The costs and hassle of probate are avoided<br />Serving the Holland area since 1900<br />
  18. 18. How do people protect against estate recovery?<br />What about other assets besides the house<br />The patient should make sure those assets avoid probate (i.e. having a trust named as owner, naming a beneficiary, etc.)<br />Serving the Holland area since 1900<br />
  19. 19. Some other things to be concerned about<br />When a single person is on Medicaid, he or she can keep the house<br />However, he or she will not be able to use Social Security and other income to pay the house expenses<br />Serving the Holland area since 1900<br />
  20. 20. Some other things to be concerned about<br />This typically means that a child or beneficiary must pay these expenses<br />Children should protect their right to be reimbursed by executing and recording a mortgage against the house<br />Serving the Holland area since 1900<br />
  21. 21. Some other things to be concerned about<br />This gives a child’s reimbursement claim higher priority than the State of Michigan’s estate recovery right<br />A child will get paid when the house sells <br />Serving the Holland area since 1900<br />
  22. 22. Some other things to be concerned about<br />You should make sure the Medicaid recipient has signed a financial (also known as a general durable) power of attorney<br />That way, the agent can execute the mortgage<br />Serving the Holland area since 1900<br />
  23. 23. This is subject to change so you have to stay informed… <br />Serving the Holland area since 1900<br />
  24. 24. Stay informed by receiving our monthly newsletter (register by emailing laura@holland-law.com)<br />Serving the Holland area since 1900<br />
  25. 25. Questions……<br />Serving the Holland area since 1900<br />
  26. 26. Thank You<br />P. Haans Mulder, JD, MST, CFP®<br />Cunningham Dalman, P.C.<br />321 Settlers Road<br />Holland, MI 49423<br />(616) 392-1821<br />phmulder@holland-law.com<br />mary@holland-law.com<br />www.holland-law.com<br />Serving the Holland area since 1900<br />

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