BEING THE CARETAKER FOR A LOVED ONE

It is a life changing event when a parent or loved one needs your care. Usually it is the opposite of life as we know it. In many instances our parent or loved one took care of us during our lifetime and now it is our turn to take care of them. Usually these situations arise suddenly or in the form of a crisis. It may be your father needing open heart surgery, your father taking an unexpected fall or your husband suffering from dementia. Perhaps you never intended on being a caretaker but you don't know what else to do or the proper steps to take.

THE LAWYER IS IN……………

Frequently asked questions by seniors:

What is a Power of Attorney?
It is a document where you authorize a person or bank to act on your behalf and to handle your affairs for you. (i.e. banking transactions, selling your home, making gifts, etc.)

Are there different types of Powers of Attorney?
Yes, a Durable Power of Attorney usually goes into effect immediately and can be used once it's signed. A springing Power of Attorney can only be used once a person is shown to be disabled by the terms in the Power of Attorney.

What is Estate Planning?
This is planning during your lifetime how your wealth will be distributed upon your death and who will handle your Estate once you're gone. This is also a method by wish to attempt to save death taxes. People try to structure their assets through legal documents to get the most value from them upon their death and to save as much in death taxes, cost and legal fees as they can.

What legal documents should every person have at minimum?
A Last Will and Testament, a Power of Attorney and an Advanced Directive/Living Will.

What is the main difference between Medicaid and Medicare?
One main difference is that most people are automatically eligible for Medicare when they turn 65 and people have to become financially eligible for Medicaid even if they are 65.
Also, Medicare does not pay for at home care or nursing home care unless someone needs sub-acute care and even then they only pay for a period of time. Medicaid will pay for at home care and nursing home care even if there is no sub-acute need as long as a person is eligible.

When will Medicare pay for a nursing home?
If a person has a sub-acute need (i.e. they need occupational, physical or speech therapy, intravenous treatment, post-surgical recovery, etc.) and they have a three night stay in a hospital before they enter the rehabilitation center/nursing home Medicare will pay for up to 100 days for their sub-acute care. However, only the first 20 days are paid 100% by Medicare. For days 21-100 there is a co-pay of $144.50 per day. There is no guarantee that Medicare will pay for the entire 100 days. They can stop at any time if they have determined that the person has plateaued in their recovery or if they are not cooperating with the rehabilitation or if they no longer have a sub-acute need.

Who pays the co-pay?
The co-pay is either paid by a person's supplemental health insurance or they are forced to pay it privately. It is very important for a person to make sure that they have supplemental medical coverage that covers the co-pay in a rehabilitation center as well as the other 20% of all of their doctor's visits that Medicare does not pay.

How many years does Medicaid look back at your assets and gifting?
Medicaid loos back five years. They look at every bank account, retirement account, life insurance policy, annuity, real property that you may own, stocks, bonds, businesses, etc. They also look at every transaction over $1,000 to confirm that the monies or assets were not gifted.

Is it true that assets cannot be transferred at all during this five year period?
No, but all transfers within this five year period must be disclosed to Medicaid at the time of the application, however, you can still be eligible for benefits, with or without a penalty period.

What is Elder Law Planning/nursing home planning?
This is planning in advance for a person's nursing care while also preserving their assets for their spouse or their heirs. This can be done by a variety of legal methods such as trusts, transfers, etc. and it should be done when a person is still healthy and competent, if possible, but can still be done later in some cases.

What is Probate?
Probate is when the directions in a Will or Trust are carried out after a person dies or becomes incapacitated. In the State of New Jersey this is done in the Surrogates Court.

What assets are probate assets?
Only assets in the deceased person's name alone, with no beneficiaries, are included in their probate estate.

What is a living will?
This is a document that gives specific instructions to a person's agent of what decisions the agent should make for the persons medical care if they become incapacitated.

What is a HIPPA authorization?
A HIPPA authorization form allows the release of medical information and records to your executors and agents.

Why should a special needs trust be created?
This type of trust is for people who are younger than 65 and are disabled. If they receive a gift, inheritance or settlement from a lawsuit, they can put it in this type of trust and it will not affect their benefits. A special needs trust can be put in a persons will to protect the future inheritance of one or more of their heirs.