Alzheimer's Association Presentation

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Alzheimer's Association Presentation

  1. 1. MEDICAID, MEDICARE, VETERANSBENEFITS, AND ESTATE PLANNING:HOW TO DEVELOP A PEACE OFMIND IN UNCERTAIN TIMESAlzheimers Association-West MichiganP. Haans Mulder, JD, MST, CFP®Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) 392-1821phmulder@holland-law.com
  2. 2. Background• Partner at Cunningham Dalman, P.C.• Masters in Tax, CFP®, and specialize in estates/elder law and business planning• Cunningham Dalman, P.C. has been serving the greater Holland/Zeeland since 1900 Serving the Holland area since 1900
  3. 3. Overview • Medicaid process and eligibility rules • Example of how Medicaid planning works • Medicare Parts A-D • Transition from Medicare to Medicaid Serving the Holland area since 1900
  4. 4. Overview • Veteran’s Aid & Attendance benefit and eligibility rules • Elements of an estate plan and what the process involves • Most common types of estate plans Serving the Holland area since 1900
  5. 5. Did you know? • 40% of people 65 years and older will stay in a nursing home • Average cost to stay in a local nursing home is $6,500-7,500/month Serving the Holland area since 1900
  6. 6. What is Medicaid? • State and federal program that pays for medical treatment (including nursing home care) • Oftentimes confused with Medicare Serving the Holland area since 1900
  7. 7. When does Medicaid apply? • Applies principally in a nursing home (could apply in your home or an assisted living facility) • Applies to people who are 65 years or older, blind, or disabled • Must pass the income and asset tests Serving the Holland area since 1900
  8. 8. Who does Medicaid apply to? • Under income test, you cannot have enough income to pay the monthly cost of staying in a nursing home ($6,500-7,500 in this area) Serving the Holland area since 1900
  9. 9. Who does Medicaid apply to? • Under assets test, a single person can only have $2,000 in countable assets • Can keep your home (if it’s not in your trust) and a vehicle • All other assets are countable Serving the Holland area since 1900
  10. 10. Who does Medicaid apply to? • Asset test allows a married couple to keep their home (again, if it’s not in a trust), a vehicle, and one-half of their other assets Serving the Holland area since 1900
  11. 11. Example • Clients were husband and wife • Wife had to go to a nursing home • Didn’t stay in a hospital for three days so Medicare didn’t cover stay • Had house, vehicle, and investments Serving the Holland area since 1900
  12. 12. Example • Could keep the house (because it was properly owned) and their vehicle • Without any Medicaid planning, they would have had to spend down one-half of their investments Serving the Holland area since 1900
  13. 13. Example • Drafted a trust that allowed them to protect all of their investments (as opposed to just half) • This provided peace of mind to the husband Serving the Holland area since 1900
  14. 14. Medicare and Parts A-D • Medicare is a government insurance program that has many aspects and is divided into parts • Have to be 65 years old, be disabled, or fit specific criteria • Part A covers hospital expenses Serving the Holland area since 1900
  15. 15. Medicare Parts A-D • Part B deals with doctor’s and out-patient expenses • Part C is a private insurance plan that covers your medical expense in general • Part D is your prescription drug coverage Serving the Holland area since 1900
  16. 16. Transition to Medicaid • Many people who are eventually approved for Medicaid start on Medicare • Must have a three day hospital stay • Medicare will cover up to 100 days, but there can be a co-pay after the 20th day Serving the Holland area since 1900
  17. 17. Veteran’s A&A Benefit • Veteran is eligible for up to $1,632 per month (expenses must exceed income) • Surviving spouse is eligible for up to $1,055 per month • Veteran with a spouse is eligible for up to $1,949 per month Serving the Holland area since 1900
  18. 18. Veteran’s A&A Benefit • Will cover in-home, assisted living, and nursing home care • Financial eligibility is based in general on $40,000 of countable assets for a single person and $80,000 for a couple Serving the Holland area since 1900
  19. 19. Did you know? • You could save approximately $6,000 by having an estate plan that will cost you $850 Serving the Holland area since 1900
  20. 20. What is estate planning? • Process of planning for the future management and distribution of your assets and your future medical care • Includes documents such as wills, trusts, and powers of attorney
  21. 21. Why is it important? • Reduces the cost of administration • Minimizes stress for family and friends • Determines who will receive your assets • Authorizes who will make your medical decisions
  22. 22. What is probate? • Probate is a court process to administer a deceased person’s financial affairs • Required when someone passes away with assets in his or her own name or fails to name a beneficiary
  23. 23. Why avoid probate? • It is a public process • Can exacerbate family situations • Can be costly to administer ($5,000) • Takes time to complete (6-9 months)
  24. 24. What are the most commonestate plans? • Basic plan includes wills (potentially with a trust) and powers of attorney • For clients who do not have a house or are not concerned with avoiding probate
  25. 25. What are the most commonestate plans? • More comprehensive plan includes a living trust, pour-over wills, and powers of attorney • Designed for clients who want to avoid probate
  26. 26. What does the estate planningprocess look like? • Complete estate planning questionnaire • Attend a meeting that we discuss your goals and the types of estate plans
  27. 27. What does the estate planningprocess look like? • Review draft of documents • Attend a signing conference • Change beneficiaries or/and fund your trust
  28. 28. Questions…… Serving the Holland area since 1900
  29. 29. Thank You P. Haans Mulder Cunningham Dalman, P.C. 321 Settlers Road Holland, MI 49423 (616) 392-1821 phmulder@holland-law.com www.holland-law.com Serving the Holland area since 1900

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