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Palant & Shapiro
Attorneys At Law
(212) 608 1140 Manhattan
(718) 517 2300 Brooklyn
Although Medicare covers the majority of medically necessary expenses, generally speaking, there is no coverage for long term custodial care, such as nursing homes and home attendants. As a result, one of the objectives of an effective estate/asset plan is not just to establish the manner in which assets are distributed after death to a client’s loved ones, but to preserve these assets so that they could be distributed to family and loved ones.
Medicaid is currently the only government based insurance provider that covers custodial care services. Just as an example, the 2015 average monthly cost of stay in a nursing home is $11,843 for NYC ($142,116 annually) and $12,390 in Long Island ($146,680 annually). If a middle-class person needs nursing home, how long would it take before all hard earned savings are depleted?
“Elder law” involves the intersection of at least three distinct legal disciplines – estate laws, tax laws, and Medicaid laws. Our attorneys have handled thousands of Elder Law matters and have the necessary experience to guide you. There are various time-tested strategies that may be implemented if planning is done in advance of the need for nursing home services. One of the effective strategies involves the establishment and funding of an Irrevocable Medicaid Planning Trust. For example, a person or couple may set up such a trust and fund it with real estate, including a primary home residence. The real state within the trust then becomes protected. On the other hand, you may still reserve the right to live in your residence for the rest of your life or to receive income and still qualify for Medicaid. They key is to do this planning in advance because under present law, if you need nursing home care, there is a 5 year look back period and you may be deemed ineligible for Medicaid if you made a gift into a trust (or to your children directly), within 5 years of your nursing home application.
With respect to Community Medicaid, which essentially involves everything other than nursing home, including most home attendant programs, there is still no look-back period.
We understand that true peace of mind can only come with the confidence that your lifetime of hard work and dedication rests in capable hands. Creating that confidence takes a deep understanding of your goals and expectations. We take the time to learn exactly what those are for you. Always count on Site name for intelligent strategy and a proactive approach for securing the future safety of your assets.
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