My mother has dementia, but we need to change her will. Can we do so legally?

No. If your mother is unable to fully understand the changes being made and her competency is questioned by the Notary, it is not legally permitted. Read more about our dementia counseling services.

What other estate documents are important to have?

Most think of the need for a last will and testament as soon as they hear the word estate document, however, it is not the most important. The durable power of attorney that assigns control to a person over your financial matters under certain circumstances and the healthcare power of attorney document are the two most important and powerful documents a person can have for persons 18 years of age and above.

Is Alzheimer’s disease covered by long-term care insurance and when is the best time to shop for long-term care insurance?

Most long-term care insurance policies will cover dementia and other organic cognitive disabilities. Check the policy contract to be certain. An insurance company will not issue a new long-term care insurance policy to someone already suffering from any sign of memory loss or dementia. In terms of when to buy, it is more important to know the difference between a traditional and non-traditional policy.  Of course, with insurance, it is always better to purchase a plan sooner than later in life when it is more affordable.

What is the difference between Medicare and Medicaid?

Medicare is a federal entitlement program that pays for certain health care expenses for people aged 65 or older or for certain younger people with disabilities. Enrolled individuals must pay deductibles and co-payments, but much of their medical costs are covered by the program. Medicare is less comprehensive than some other health care programs, but it is an important source of post-retirement health care. Medicare is divided into four parts: Part A covers hospital bills, Part B covers doctor bills, and Part C provides the option to choose from a package of private health care plans that includes A, B, and supplemental coverage, and Part D is the drug coverage plan.

Medicaid is a joint federal and state entitlement program that helps individuals and families pay for the costs associated with medical and long-term custodial care. The federal government funds up to 50% of the cost of each state's Medicaid program. Unlike Medicare, which is available to everyone, Medicaid has strict eligibility requirements. The rules vary by state. In Tennessee, 69% of those in long term care facilities utilize Medicaid benefits. In most cases you do not have to be impoverished in order to qualify.

I heard that Medicare will pay for 100 days of care in the nursing home when discharged from the hospital after three days.

Not necessarily. The rule is that Medicare will pay  up to 20 days of skilled care at 100% with days 21 through 100 potentially covered with daily co-pay. If you own a Medicare supplement, or secondary coverage from another insurance provider, these co-pays are typically covered. The number of days covered by Medicare is predicated on "...if and when the patient ceases to show progress. Medicare will end the coverage period at that time." Nationally, on average, Medicare pays for 28 days.

When we applied for Medicaid for Dad, the caseworker said he had to spend down to $2,000. What does that mean?

The term “spend-down” has been misinterpreted by most professionals for years. The state would like for you to believe it means you must “spend” the amount they claim as over-resourced on the loved one’s care which is not true. It means it must be used in a way that benefits the Medicaid applicant or his or her spouse without making a transfer or gift to a third party.

Why should I utilize your services for a Medicaid application?

Navigating the maze of the Medicaid process can be stressful and confusing for most people. Families receive a peace of mind by knowing that professionals who handle as many as 500 cases per year with a 98% success rate are taking care of their loved one’s needs.

Will I lose the house when my husband goes to the nursing home?

If proper planning is not completed prior to making application for Medicaid benefits, the nursing home will not be the one that files to recover the assets such as the home. The state will have the authority to put a ‘lien’ on the house after the applicant passes away. Ownership of real estate does not preclude anyone from receiving Medicaid nursing home benefits.

We want the kids to have the house, so should we just quitclaim it to them now?

Do not do this without knowing the full consequences of your action as it relates to your state’s gift tax and Medicaid transfer rules.

Does the state still have the three year look-back rule for gift-giving?

No…now it is five years and the penalty period begins from the date of application, not from the date of the gift. The penalty for making an improper transfer or gift is applied forward after the date of application.

My mother needs to go to an assisted living, but her income isn’t enough to cover the cost. What is the financial assistance program called for veterans and their spouses?

Certain benefits are provided to veterans and surviving spouses of veterans under the Aid and Attendance benefit of the non-service connected pension program. NBC Nightly News aired a program called Forgotten Income for Forgotten People about this little known benefit. It provides a tax-free reimbursement to those who qualify for either house-bound or assisted living care.

With respect to retirement planning, what are some of the important things to plan for now?

The biggest fears or concerns for most seniors according to past AARP surveys are:

•      Outliving one’s income and assets
•      A loss of independence and control
•     The fear that their need for long term care and its related cost will drain their estate

Government and society constantly changes and few people are ever prepared for the changes in the legal, financial or social aspects of the aging process.

My parents have their assets in a revocable living trust. Are they protected from probate and the nursing home?

Generally speaking, a revocable living trust will avoid probate if the assets have been funded into the trust. However, this type of trust no longer protects assets in the nursing home Medicaid qualification process.

Does the Veteran's Administration offer any financial assistance with today's care-giver cost?

Yes, through the non-service connection pension program, the Aid and Attendance Program offers benefits to those servicemen and servicewomen who served full time in any branch of service for at least 90 consecutive days; of which one day a military conflict was in process. To qualify, the person did not have to have been in the actual conflict, only serving their country during established confict dates per below:

World War I      04/06/1917 - 11/11/1918
World War II    12/07/1941 - 12/31/1946
Korea                06/27/1950 - 01/31/1955
Vietnam            08/05/1965 - 05/07/1975
Persian Gulf    08/02/1990 - TBD

What are the Qualifications for the Aid and Attendance Pension benefit?

1. Qualifying Military Service
2. Medical Necessity
3. Care Cost Compared to Monthly Income
4. Liquid Assets and Resources