‘Tis the Season: Implications of Gifting on ALTCS Eligibility

In our everyday lives, giving to others is a definitely a good thing. During the holiday season, especially, we are often reminded of how important it is to give of our time, talents, and financial resources. Unfortunately, financial generosity may adversely affect financial eligibility for ALTCS.

 As with any government program, there are requirements for eligibility and ALTCS is no exception. Along with meeting medical criteria, an individual must also meet certain financial requirements in order to qualify for the program. Part of the financial review involves a five-year look-back period on gifts and transfers from the applicant. Some common gifts that can pose problems include donations to charity or gifts to family members such as money to pay for education or to pay down debt.

 Some well-intentioned adult children may transfer their parents’ money into their names in an attempt to help preserve assets. They mistakenly believe that by taking the money out of the parent’s name and “holding” it for them in their own account, that the state will not count the money as asset. This is not a good option. The state could actually penalize this ALTCS applicant according to the amount of money transferred. The more money that was transferred, the longer this applicant will go without full long-term care coverage from the date he or she would otherwise qualify.   

 Please remember that we are here for free pre-screens to help you determine whether or not you have issues such as these that may threaten ALTCS eligibility. The good news is that, oftentimes, these issues can be corrected.

 You can reach us toll-free at 1-800-243-1160 or you can visit our website at www.MyALTCS.com and check your eligibility by using our free Quick Calculator to determine if you may need to seek legal advice before applying for ALTCS.

 Happy Holidays from the Elder Law team!

The Holidays can be an overwhelming time for many.   This season can bring out many emotions as we remember loved ones who have passed away.  As some remember the past and the care they provided to their loved ones, others are preoccupied with their current caregiving experience.  Now is the best time to remember that the caregiver needs care too.  I know as a caregiver myself that tending to our own needs is often the last thing on our long list of tasks.  Don’t forget to take sometime for yourself.   And don’t forget to ask for help when needed. 

The social service team here at Jackson White are available to assist you on your caregiving journey.  Don’t hesitate to call us with your questions about long term care, placement and other support services.

Tis the season for reflection and appreciation!   

Please join JacksonWhite and Hospice Family Care for a presentation about an important but often misunderstood benefit for Wartime Veterans.  Find out how the VA Aid and Attendance benefit can help your clients pay for needed care.

Wednesday, Dec 16th at 12:00-1:30pm

Hospice Family Care- 100 E. Sheldon Street- Prescott

RSVP to Ned Dagle, Hospice Family Care to reserve your spot. 928-541-1740

Tags: Help Paying for long term care, Prescott, VA Aid and Attendance

Passing the medical PAS (pre-admission screening) is as equally important as meeting the income and resource criteria for ALTCS.  The applicant needs to score at least 60 points on the PAS in order to be approved.  The applicant will be scored based upon on much hands on assistance is needed in completing their ADL’s such as bathing and dressing.  A person with proof of a clinical diagnosis of a Dementia will receive an automatic 20 points.  A person with a form of paralysis will receive an automatic 6.5 points.  The applicant will need to show proof of the paralysis with medical records.  Right or left sided weakness will not count.   An applicant with a current prescription for oxygen may also receive an automatic 5 points based upon how often it is used.

Tags: ADL's, ALTCS Eligibility, Medical PAS

So many of our calls that come in for our “Free Pre-Screen” have to do with Advance Directives -  or I should say – the Lack of having Advance Directives in place.  Please do not wait to complete your power of attorney forms.   You should have a Financial Power of Attorney, Medical Power of Attorney AND the Mental Health Power of Attorney forms done.  All of these needed documents are on our website for FREE!!!  Please don’t put off doing them.   If you do not complete these documents and something happens to you that you are unable to make your wishes known, emergency gaurdianship can be very expensive. 

The document we get asked about the most is the MENTAL HEALTH  POWER OF ATTORNEY – Yes you need one!!!!!  Even in rare circumstances that you may need to be admitted to a Level One behavioral health center and need psychotropic medication – this is the only way your agent can admit you.   A medical Power attorney document in not enough in AZ. 

Free Form…vs…..Expensive Guardianship- the choice is yours!!!

Tags: Power of Attorney

Question: “The hospice social worker recommended that I look into Arizona Long-Term Care System (ALTCS) for my husband. This is a second marriage for both of us and we have always kept our finances separate. How can I protect myself and still get him the coverage that he needs to pay for his care?”

Answer: This is a very common concern that we hear at JacksonWhite while conducting our pre-screen benefit eligibility assessments. As with every major life decision we make, there are privileges and responsibilities that go along with it. Marriage is no exception. Arizona is a community property state, which essentially means that when married, what’s mine is yours and what’s yours is mine. When the State is determining countable resources or assets for married couples, they make no differentiation between the husband’s assets and the wife’s assets. They are counted together regardless of whose name is on which account.

As it relates to the question above, by being married, the wife cannot hold back her assets from being considered by the State. They will count along with her husband’s in determining how much money the couple may or may not need to spend down in order for the husband to qualify for ALTCS. On the flip side, marriage offers certain privileges which off-set the responsibilities when it comes to ALTCS. Spousal anti-impoverishment laws are in full force to protect the well-spouse, or the wife in this scenario. ALTCS eligibility requires that a married couple’s countable resources are divided in half. The well-spouse keeps their half and the ill-spouse spends their half down to $2,000. The anti-impoverishment laws allow the well spouse to maintain more than the “half” if proper planning is done.

 Every couple’s financial situation is different and there is no cookie cutter approach to ALTCS financial eligibility. It is important to note that there are exceptions and rules when determining the amount of assets that are considered countable resources. The Elder Law team at JacksonWhite is here to support you in navigating your options for long-term care before you apply for ALTCS. Give us a call at 1-800-243-1160 for a free pre-screen or visit http://www.MyALTCS.com and use the quick calculator to get started on your road to ALTCS approval!

While visiting a client in a nursing home last week to get some legal documents signed and to finalize the approval of ALTCS, the wife of the client told me a very interesting story.  It is her story….one that she felt so profound she wanted to share with me. 

Her husband is in the nursing home.   He has a room mate.  The two wives have become close as every day they visit their husbands and talk.   Mrs S, our client, moved her husband in almost the same time as Mrs H moved her husband in. Both did consultations with JacksonWhite, as both had too much to qualify for ALTCS yet did not have enough funds to pay privately for the $6000/month care their husbands were requiring.  Mrs S and Mrs H both had approximately the same amount of assets.  Mrs S decided to proceed and let JacksonWhite handle the application process and the preservation of funds.   Mrs H, decided that the flat fee from JacksonWhite was too expensive and decided to proceed with application on her own.   Mrs S, after giving me a huge hug, said that her husband had been approved with our help in less than three months, we were able to protect all remaining asset, do all the leg work, do all the necessary legal documentation to protect house AND she got a refund from the nursing home for the months her husband was “pending” ALTCS.  Sadly, Mrs H was still struggling.  She had been paying privately this whole time, has has such trouble getting all needed documents together and it looked like she was going to be denied ALTCS due to an issue that we had easily fixed for Mrs S.   She was distraught and overwhelmed and worse even, running through all of her savings to pay for care while she tirelessly worked on the ALTCS piece.  Now that Mrs S’s husband is approved for ALTCS she is now only paying $200 for share of cost she is able to relax and  be there for her husband while Mrs H is still floundering and having trouble.   Mrs S said to me…”my heart breaks for Mrs H, she should have just used your services and she would be all done, just like me”.

It is true that legal fees are expensive, but so important to weigh the potential loss if application is done incorrectly or denied.    There is certainly something to be said for getting it done right the first time and having peace of mind knowing the application and eligibility issues are all being dealt with correctly.  Mrs S thanked me over and over and whispered to me…”hiring JacksonWhite was the smartest money I have ever spent”…..

Outreach and education are so important when it comes to identifying benefits for those who may be eligible. ALTCS (Arizona Long Term Care System) and the VA (Veteran’s Administration) Pension program are two benefits that I frequently discuss. Most of the time I get a statement of, “well, I know I can’t have both ALTCS and pension, so how do I choose?” This is when I can surprise the person by asking, “Who told you that you cannot receive both benefits?” Most of the time this is just what they, “heard,” and are not really sure where they heard such a thing. So, if you or someone you know are looking into potential benefits, get the facts first, and know that a person can absolutely receive both a VA pension and ALTCS benefits. If you have questions about either of these programs and how they can work together, please call one of our Elder Care Coordinators at (480) 464-1111.

Tags: benefits, eligibility criteria, Long-Term Care, pension

The IRS is quite liberal when it comes to granting 6-month filing extensions for federal income taxes. While this extension does not provide taxpayers with additional time to pay tax liability, it does provide extra time in which to submit tax returns. Taxpayers must file extensions in a timely fashion if they are to avoid fines and penalties from the IRS.As taxpayers know, taxes are due at both the state and federal level. Many taxpayers find it necessary to request an extension to file their state taxes. Those who file for an extension at the state level only must submit a Form 204 to the Arizona Department of Revenue. However, Arizona residents who submit a filing extension for federal income taxes are not required to submit Form 204 to effectuate a state extension. This is clearly illustrated on Form 204 itself, which states in relevant part: “Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six month federal extension.”

Despite the clear language of Form 204, the Arizona Department of Revenue issued late filing penalties this year to many Arizona residents who submitted timely federal extensions. Many taxpayers were issued penalties for hundreds of dollars without cause. This no doubt came as a shock to those who filed federal extensions in the past without raising issue with the Arizona Department of Revenue. Likewise, those who relied on Form 204 have good reason to be dismayed by the late filing fees. The fact of the matter is that the Arizona Department of Revenue must abide by its standing policy of extending state filing dates by the length of the extension granted at the federal level.

Arizona residents cannot be fined by the Department of Revenue for late filing if they submitted a timely request for a federal extension. If the IRS granted you an extension and you nevertheless received a penalty from the Department of Revenue, contact JacksonWhite to determine your best course of action. If you have already paid a fine to the Department of Revenue, which you believe was without basis, redress may be available. Contact JacksonWhite to discuss the facts of your situation in detail.

Evercare Hospice is offering a free 6-week support workshop for those who have lost a loved one.  Coping with the death of a loved one during the holiday season can be very difficult especially for the first holiday they experience without them. 

The Holidays Without You
September 28^th  – November 2^nd
6:00 p.m. – 8:00 p.m.
Foundation for Senior Living (Caregiver House)
12^th Street and Thomas Rd
Phoenix, AZ  85014

 Registration or questions: please call Ellie Isaacson or Cheryl Askew at 602-749-5900

Tags: Add new tag, care giver, coping, End-of-Life, Event, grief counseling, Hospice, workshop