Your SlideShare is downloading. ×
0
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Estate Recovery Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Estate Recovery Presentation

255

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
255
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

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

×