Alzheimer's Association Presentation 2012

342 views

Published on

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

  • Be the first to like this

No Downloads
Views
Total views
342
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Alzheimer's Association Presentation 2012

  1. 1. ESTATE PLANNING, VETERANSBENEFITS, MEDICARE, ANDMEDICAID: HELPING A LOVED ONEWITH ALZHEIMER’SAlzheimers 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.• Has a Masters in Tax, CFP®, and specialize in estates/elder law and business planning Serving the Holland area since 1900
  3. 3. Overview • Elements of an estate plan and what the process involves • Most common types of estate plans • Veteran’s Aid & Attendance benefits and eligibility rules Serving the Holland area since 1900
  4. 4. Overview • Medicare Parts A-D • Transition from Medicare to Medicaid • Medicaid process and eligibility rules • Example of how Medicaid planning works Serving the Holland area since 1900
  5. 5. 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 (financial and health care)
  6. 6. 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
  7. 7. 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
  8. 8. 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)
  9. 9. 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
  10. 10. 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
  11. 11. Veteran’s A&A Benefit • Veteran is eligible for up to $1,704 per month (expenses must exceed income) • Surviving spouse is eligible for up to $1,094 per month • Veteran with a spouse is eligible for up to $2,020 per month Serving the Holland area since 1900
  12. 12. Veteran’s A&A Benefit • Will cover in-home, assisted living, and nursing home care • Can either have low monthly income or medical expenses that exceed income • Must have not more than $80,000 of countable assets Serving the Holland area since 1900
  13. 13. Medicare and Medicaid • 40% of people 65 years and older will stay in a nursing home • Average cost to stay in a local nursing home is $7,500-9,000/month 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. 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
  18. 18. 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
  19. 19. Who does Medicaid apply to? • Under income test, you cannot have enough income to pay the monthly cost of staying in a nursing home ($7,500-9,000 in this area) Serving the Holland area since 1900
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. Questions…… Serving the Holland area since 1900
  26. 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 www.holland-law.com Serving the Holland area since 1900

×