Q. My mother, Rose, is a Medicaid recipient who has been in a nursing home for the past eight months due to Alzheimer's. My father, William, has been living in the home where he and my mother lived for over 25 years in Fredericksburg, Virginia. They bought the house together when they moved from Stafford, VA down to Fredericksburg. The mortgage is paid off and the house is worth about $200,000. My dad also owns a car and has some other personal assets that were allowed under Medicaid, plus about $50,000 in CDs that Medicaid let him keep. My dad was recently diagnosed with cancer, and because of his age, he doesn't want to get any treatment for it. It was a difficult discussion, but my brother and I recently suggested to dad that maybe he should update his estate planning documents in case he dies before mom.  Does this make sense?  Are there planning options for my father that will not affect my mother's eligibility for Medicaid? Would it be wise for my father to remove mom as a beneficiary altogether?

A. It would definitely be wise for your father to update his entire estate plan. He probably has your mother named as his primary agent for all of his documents, and as his primary beneficiary of his estate if he dies first. They probably also still own their house jointly. A huge issue arises if your father predeceases your mother. Because your mother is receiving benefits under Medicaid, she cannot own assets totaling more than $2,000. These are a few scenarios to describe what can happen if you father includes your mother as a beneficiary:

To prevent your father's death from affecting your mother's Medicaid eligibility, it is important you're your father update his estate plan. There are various steps that your father can take to protect these assets, including setting up a trust. If your father creates a trust, it could provide that if your father were to predecease your mother, the assets will bypass your mother and instead pass directly to you and your brother, either outright or in trust. In this case, the assets contained in the trust will not replace the government benefits, and will not affect Medicaid Eligibility. To find out more about strategies specific to your situation, be sure to set up an appointment with a Certified Elder Law Attorney, such as Evan H. Farr.

Evan H. Farr, CELA, is one of the leading Elder Law Attorneys in Virginia and foremost legal authorities in the Country in the field of Medicaid Asset Protection and related Trusts. The Fairfax and Fredericksburg Medicaid Asset Protection Law Firm of Evan H. Farr, P.C. is dedicated to helping protect seniors and their families by preserving dignity, quality of life, and financial security. Please call us or ask your father to call us at 703-691-1888 to make an appointment for a no-cost consultation to discuss your father's situation and explore his options.

 

 

 

 
 
Q. I recently found out that I am going to be a grandfather for the first time next year. I want to stay around for a while and watch my beautiful grandson grow up, be there for all the important milestones in his life, and be able to keep up with him. Lately, I have been feeling tired and out of shape. You seem like you are full of life and are in good physical health. What is the secret to maximizing my overall well-being and quality of life?

Phil N. Outtashape
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Dear Phil,

Congratulations in advance on becoming a grandpa! It is such a blessing and a wonderful time in your life. It is also a great time to live a healthy lifestyle and focus on your own well-being.

Seniors who practice healthy behaviors, take advantage of clinical preventive services, and continue to engage with family and friends are more likely to remain healthy, live independently, and incur fewer health-related costs. The following are ways seniors can manage their health, thus improving their quality of life:

Too often, when people think of quality of life, planning for the future and for loved ones doesn't come in to play.  At the Fairfax and Fredericksburg Elder Law Firm of Evan H. Farr, P.C., we are dedicated to helping protect seniors and individuals with special needs by preserving dignity, quality of life, and financial security. If you have not done Long-Term Care Planning, Estate Planning or Incapacity Planning (or had your Planning documents reviewed in the past several years), or if you have a loved one who is nearing the need for long-term care or already receiving long-term care, call us at 703-691-1888 to make an appointment for a no-cost consultation.

Purrs,
Saki and Alley

About Saki and Alley: Saki and Alley are nine year old Siamese cats that belong to Jeannie and Evan Farr and live here at the Farr Law Firm.  They are very sweet and smart and love all the attention they get from staff and friendly clients at the firm. We encourage you to visit us and meet these extraordinary Siamese cats!