Our Law Firm counsels seniors and their concerned families about important issues. Often, the senior suffers from dementia/Alzheimer’s, is a stroke victim, experiences frequent falls, or has other health issues. A common issue: how does the senior get the care he or she needs, and how can the senior afford the expensive care without outliving their money?
When considering these and other issues, we often evaluate benefits to help pay the expensive care costs. Veterans Administration benefits for veterans and their surviving spouses, as well as Medi-Cal for skilled nursing are two benefits that help with care costs. As the rules are complex and ever changing, and the laws vary from state to state, often specific planning must occur to be eligible. Unfortunately, many families rely on erroneous information, and make disastrous mistakes. The following are a few we often see:
Mistake #1: Relying solely on a will or a living trust. A will only takes effect upon death, involves the probate court, and provides no assistance if the senior is incapacitated. A living trust, although preferable in many cases, will not protect assets from the State of California, or nursing homes costs.
Mistake #2: Relying on Medicare or health insurance. Neither Medicare nor health insurance pays for the cost of long-term care. The average cost of nursing home care is more than $7,000.00 per month. With this high cost, most families will quickly run through life savings and put the home in jeopardy, unless they have a correct legal plan to preserve assets.
Mistake #3: Selling the family home to pay for nursing home care. This is almost never required. California has favorable laws regarding the family home. However, the senior should be well informed regarding all options and issues, including capital gains and property tax issues, before taking any action. Professional advice is always required so expensive mistakes are avoided.
Mistake #4: Not seeking the advice of an Elder Law Attorney. VA, Medi-Cal, and other government benefit laws are highly complex. Very few attorneys and advisors know and understand the laws and regulations that apply. Estate Attorneys are not Elder Law Attorneys.
Mistake #5: Doing Nothing. The senior should take steps to protect themselves, their families, and their assets. The senior should get correct legal advice and make informed decisions. Doing nothing is often an invitation to involve the court.
Medi-Cal, VA benefits, and Elder Law are highly complex areas. Costly mistakes are often made when there is no planning, or if the “planner” does not know what they are doing. It is wise to consult an experienced Elder Law Attorney who understands this important area.
For more information, please visit www.JaneMcNamara.com, or www.VAbenefits4seniors.com, or call 661-287-3260.