Archive for the ‘Michigan Elder Law’ Category

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Elder Law Mediators Focus on Elder Law Issues

Saturday, March 20th, 2010 michiganveteranelderlaw

Mediation has been used for years in the area of divorce and civil litigation.  Well, now according to a Wall Street Journal article it is coming to the area of Elder Law.  “Elder mediation has started to take off over the past couple of years”, according to the article.

You can read the Wall Street Journal article at Mediators Focus on Elder Issues.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

Posted in Michigan Elder Law, Michigan Lawyer | No Comments »

Michigan Medicaid Planning and the New 2010 Tax Code Changes

Saturday, March 13th, 2010 michiganveteranelderlaw

There has been a huge change to the Tax Code in 2010 that has some interesting and important effects on Michigan Medicaid Planning.

There is currently no federal estate tax or generation-skipping tax for decedents dying in 2010 unless Congress passes new estate tax legislation this year. The federal estate tax will return in 2011 with a $1 million exemption ($2 million for married couples with basic planning) and the generation-skipping tax exemption will return at $1 million, indexed for inflation.

As of January 1, 2010, IRC Section 1022 became effective and substantially changed the rules for obtaining a step-up in basis for real property or appreciated assets passed to a beneficiary at the death of the property owner. Section 1022 replaced the prior rule, IRC Section 1014, which expired on December 31, 2009, along with the estate tax.

The changes to the tax code can seem very confusing as it applies to Michigan Medicaid planning. it is also important to remind Michigan seniors and their loved ones of the importance of planning early to protect assets from the rising costs of long-term care. To read more on this topic, continue reading at Michigan Medicaid and 2010 Tax Code Changes.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

Posted in Elder Care, Long-Term Care, Michigan Elder Law, Michigan Medicaid Planning | 2 Comments »

Howell Assisted Living Center banned from Accepting new Medicaid and Medicare Patients

Saturday, February 27th, 2010 michiganveteranelderlaw

A complaint has been files against the Howell Care Center, which is a Livingston County assisted living facility for major violations involving medication, professional standards, and administration, according to a recent www.detnews.com story.  The Howell Care Center has been fined and has six months from Jan. 7 to correct the deficiencies.  You can read the article here: Assisted living center in Howell cited for violations.

Posted in Elder Care, Michigan Elder Law, nursing home | 3 Comments »

Government Assistance with Veteran’s Claims

Friday, February 26th, 2010 michiganveteranelderlaw

If you want to communicate with the Federal Government regarding any Veterans Affairs, both the House and the Senate have their own web pages dedicated to assisting Veterans.

The United States Senate, has a section dedicated specifically to assisting with Veterans Benefits claims. You can reach the Committee on Veterans Affairs at their website which is http://veterans.senate.gov/

The United States House of Representatives page also contains a great deal of information that is of interest to Military Veterans.  You can access the House’s Veterans information at http://veterans.house.gov/

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

Posted in Michigan Elder Law, Michigan Lawyer, Michigan Veteran Benefits, Michigan Veteran Lawyer | 2 Comments »

Long-term Care Insurance, Do’s and Dont’s

Thursday, February 25th, 2010 michiganveteranelderlaw

Long-term care insurance can be a confusing proposition for Michigan seniors.  That is why I recomend that you sit down with a long-term care professional who is knowledgeable in the area.  Nationally known Elder Law attorney, Robert Fleming, has an interesting article on long-term care insurance entitled, The Do’s and Don’ts of Long-Term Care Insurance.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

Posted in Elder Care, Long-Term Care, Michigan Elder Law | No Comments »

Dovetailing Medicaid with Michigan Veterans Benefits

Saturday, February 20th, 2010 michiganveteranelderlaw

Veterans who served on active duty during a period of war or their surviving spouses could be eligible for a little-known Department of Veterans Affairs income program called Veterans Pension. Pension is more popularly known in the media as the “aid and attendance benefit.” This additional income can pay up to $1,843 a month to help veteran households pay for the elder care costs of home care, assisted living or nursing home care. According to the national care planning Council, the veterans aid and attendance could be available to 33% of all seniors over 65 under the right circumstances. That’s how many veterans or their surviving spouses there are in this country.

There is an income and an asset test to qualify for Pension. A special provision in the way the pension benefit is calculated can allow households with income up to $5,000 or $6,000 a month to still qualify for this benefit. The difficulty, oftentimes, is qualifying under the asset test. Generally, couples’ households with assets in excess of $80,000 will not qualify for Pension and assets for a single veteran or a surviving spouse in excess of $50,000 may disqualify the single person household. However, there is no specific asset test and amounts less than those listed above may also disqualify the applicant. A personal residence, assets that cannot easily be turned into cash, a car and personal property are exempt from the asset test.

Assets that may disqualify an applicant can be given away or turned into income and there is no penalty for doing this as there would be with Medicaid. After making adjustments to assets to qualify, an application can be made and generally an award will be granted based on the reasonableness of new asset amounts.

Unfortunately, assets that are gifted within a five-year period starting from the date of the gift could disqualify someone applying for Medicaid. Oftentimes, veteran households receiving Pension will need Medicaid because the pension benefit does not cover the full cost of care as would Medicaid.

It is extremely important that anyone who planning to qualify for the aid and attendance benefit should also make provisions to avoid or reduce the penalty imposed through early gifting by Medicaid. Counsel from an elder law attorney should be obtained and the appropriate planning for Medicaid should be done. Christopher J. Berry, Esq. is a VA Accredited attorney and is a member of the National Academy of Elder Attorneys (NAELA). He focuses his law practice on assisting seniors with veterans benefits and Medicaid and can help with dovetail planning for the two benefits. Christopher J. Berry, Esq., can be reached at (248) 971-1700 or online at www.witzkeberry.com and www.michiganelderlawcenter.com.

Posted in Michigan Elder Law, Michigan Medicaid Planning, Michigan Veteran Benefits, nursing home | 2 Comments »

Medicaid Planning From a Michigan Elder Law Lawyer

Saturday, February 20th, 2010 michiganveteranelderlaw

michiganlighthouseFor all practical purposes, in the Michigan the only “insurance” plan for long-term institutional care is Medicaid. Lacking access to alternatives such as paying privately or being covered by a long-term care insurance policy, most people pay out of their own pockets for long-term care until they become eligible for Medicaid. Although their names are confusingly alike, Medicaid and Medicare are quite different programs. For one thing, all retirees who receive Social Security benefits also receive Medicare as their health insurance. Medicare is an “entitlement” program. Medicaid, on the other hand, is a form of welfare — or at least that’s how it began. So to be eligible for Medicaid, you must become “impoverished” under the program’s guidelines.

Also, unlike Medicare, which is totally federal, Medicaid is a joint federal-state program. Each state operates its own Medicaid system, but this system must conform to federal guidelines in order for the state to receive federal money, which pays for about half the state’s Medicaid costs. (The state picks up the rest of the tab.)

This complicates matters, since the Medicaid eligibility rules are somewhat different from state to state, and they keep changing. (The states also sometimes have their own names for the program, such as “MediCal” in California and “MassHealth” in Massachusetts.) Both the federal government and most state governments seem to be continually tinkering with the eligibility requirements and restrictions. This has most recently occurred with the passage of the Deficit Reduction Act of 2005 (the DRA) which significantly changed rules governing the treatment of asset transfers and homes of nursing home residents. The implementation of these changes will proceed state-by-state over the next few years. The rules for gaining eligibility to the program are explained in detail in the Medicaid section of this site. But to be certain of your rights, consult an expert. He or she can guide you through the complicated rules of the different programs and help you plan ahead.

Those who are not in immediate need of long-term care may have the luxury of distributing or protecting their assets in advance. This way, when they do need long-term care, they will quickly qualify for Medicaid benefits. Giving general rules for so-called “Medicaid planning” is difficult because every client’s case is different. Some have more savings or income than others. Some are married, others are single. Some have family support, others do not. Some own their own homes, some rent. Still, a number of basic strategies and tools are typically used in Medicaid planning.  It is important to contact a Michigan Elder Law attorney familiar with Michigan Medicaid planning before you take any action, such as gifting.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.


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Posted in Michigan Elder Law, Michigan Lawyer | 1 Comment »

What is a Michigan Elder Law Attorney and How Can One Help Me?

Saturday, February 20th, 2010 michiganveteranelderlaw

oldmanOur population is aging, and as we continue to age, we face complex and difficult legal issues to deal with. Convoluted laws and regulations with both Medicaid and the Veterans Administration do not make navigating your senior years any easier. In response to these challenges a new area of law is developing, that is, Elder Law.

Elder law is a growing area of legal practice where attorneys will work with seniors, people with disabilities and their families to develop legal and financial strategies to pay for long-term care and to assist clients in navigating the complex legal rules and regulations involved with the various governmental programs.

For example, say your mother has just been diagnosed with Alzheimer’s disease and is looking at on-going nursing home bills at over $6,000 per month. A quality Elder Law lawyer would be able to put together a plan that will protect Mother’s assets from the nursing home, for the benefit of the family, by developing a long-term care strategy and navigating the governmental Medicaid program on your behalf.

Maybe, you father was a Veteran and is looking at needing assisted living or home health care. A Michigan Elder Law attorney (who should also be accredited by the Veterans Administration), would be able to help your father possibly qualify for the little known Veterans Administration Pension Benefit, which could help offset some of the costs of the assisted living center or home health care that your father is receiving.

Finding a well qualified Elder Law attorney can be difficult, as it is a specialized area of law. Your Elder law attorney should have credentials such as being a member of the National Academy of Elder Law Attorneys (NAELA), ElderCounsel, Elder Care Matters Alliance, and be accredited by the Veterans Administration to assist Veterans with receiving Veterans Benefits.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

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Posted in Michigan Elder Law | 3 Comments »

Great Job Social Security Administration

Friday, February 12th, 2010 michiganveteranelderlaw

In the news today, it was announced that the Social Security Administration has added early-onset Alzheimer’s to its Compassionate Allowances Initiative.  What this means is that there will be an improved and expedited disability determination process by the Social Security Administration.  The initiative identifies debilitating diseases and medical conditions for faster processing and payment of Social Security Benefits.  You can read more about this at the Alzheimer’s Association website.

-Christopher J. Berry, Esq. is an elder law attorney practicing in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com.

Posted in Michigan Elder Law | No Comments »

Income Only Trusts for Medicaid and Asset Protection

Thursday, February 11th, 2010 michiganveteranelderlaw

Today, I attended a seminar presentation lead by leading national asset protecting and Medicaid planning attorney Even Farr.  I’ve included some of my notes from the call on Income Only Trusts for Medicaid planning and asset protection.

Income only Trusts are a pre-planning tool that can replace the need for long term care insurance.  The Income only Trust is a self-settled, irrevocable trust, where a Settlor retains right to income only and the settler must not have the right to the principal of the trust under any circumstances.  So what does that all mean?

So what does Irrevocable mean?  It means cannot be revoked unilaterally be the Settlor.  Termination by all parties is allowed under common law, including Section 411 of the Uniform Trust Code.  Additionally, there can be access to principal through termination (consent of all interested parties) or through distribution of principal to the remainder beneficiaries who my voluntarily use for the benefit of the Settlor.

What is income?  Income means interest, ordinary dividends, rental income and any other taxable income that does not qualify for capital gains treatment.

What are some of the benefits?  First creditor protection.  Once an asset is transfererd into the Income only Trrust, it’s protected immediately from creditors.

The basic logic of the trust is that clients can convey a present absolute estate to their children or anyone else they wish to transfer assets to.  Clients can convey an estate in remainder.  With both, you have the same resutls, i.e., the assets don’t belong to the client and are therefore protected from the client’s creditors (assuming there is no fraudulent conveyance).

What does “Self-Settled” mean?  The secret is that the term “self-settled” term as used by the general asset protection community to describe an irrevocable trust with the settlor as a beneficiary as income and principal.  The Income only Trust, obviously, only allow access to income, not principal.

Settlors retained controls.  Settlor can be the trustee, can change the trustee, can change the beneficiaries, receives all the income, and may have indirect access to principal.

Why these work for Medicaid?  It has been permitted since OBRA ‘93 and was latter clarified in the Richardson letter in 12/23/1993.

-Christopher J. Berry, Esq. is a Michigan elder law attorney, a Veterans Administration Accredited attorney, a member of the National Academy of Elder Law Attorneys (NAELA), a member of ElderCounsel,  and practices elder law, medicaid planning and Veterans Benefits planning in Bloomfield Hills, Michigan.  He can be contacted at (248) 971-1700 or online at www.witzkeberry.com. Visit his  Michigan Elder Law Website at: Michigan Veteran and Elder Law Firm.

Posted in Michigan Elder Law | No Comments »

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