MEDICAID ADVISOR
Preparing Early for Your Care BY COLIN SANDLER Another important reason to do some preemptive planning is to make sure you have essential, yet simple, planning documents in place, including a power of attorney and health care proxy. Not having these items when you need them can be devastating.
In life, we do so many things to protect ourselves against potential adverse events. We buy health insurance in case we get sick. We buy car insurance in case we have a car accident - and homeowners’ insurance for the many things that can go wrong with our home. Still, even in a society where these insurances are something most of us buy in to, so few people do any planning for their longterm care needs. Many people find the cost of longterm care insurance profunded with property, life insurance polihibitive. Or they may not qualify for it by cies, annuities, or other financial assets. the time they seek it out. So what else can we do? You would not place any kind of retirement assets into an irrevocable trust but Meeting with a Medicaid specialist and/ those assets can be exempt once you or an elder law attorney while you're still are taking income from them. in good health is an important first step. You can do some strategic planning with A primary reason people push back on your assets to ensure you will be eligible the idea of an irrevocable trust is it refor benefits when the time comes. The quires you to give control of those assets earlier you do this planning, the more to your trustees, which are often your likely you will be able to shelter your as- children but can be anyone you trust. sets. Moreover, getting educated and understanding your options will make Although technically the person who you better prepared for certain possible creates the trust can no longer directly eventualities. access the assets, the trustees can access most trusts if needed. More often The most common tool for sheltering as- than not, assets placed in a trust, such sets in advance is an irrevocable trust. as property or life insurance, are sitting Typically, an irrevocable trust can be there - accumulating value for the future. fall 2021
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If you seek to obtain a power of attorney for a loved one when she/he no longer has the capacity to appoint you, then you cannot get a power of attorney. In these types of cases, most likely, you will be forced to go to court and have a guardian appointed. And there is no guarantee that you will be appointed the guardian. It could be somebody outside the family who will then be able to make decisions about your loved one even if you don't agree with those decisions. Planning tools such as a power of attorney and irrevocable trusts need to be completed by a qualified attorney. However, exploring the options and understanding what type of services are available for long-term care as well as how the Medicaid program can potentially help you in the future is invaluable. n
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Colin Sandler, LCSW, CCM, is the owner of Medicaid Solutions and has been providing advice on aging to seniors and their families for over 20 years. Call 914-924-2566 or email Colin@Medicaidsolutions.com; 2127 Crompond Rd, Cortlandt Manor, NY.
