Arizona Senior Law » Asset Protection

Scams Against Seniors

kburns — Wed, 16 Jun 2010 17:26:41 +0000

Older Americans are one of the most vulnerable and targeted segment of the population for fraud and financial exploitation. Why are they susceptible? They are more often going to be home to answer the phone or the door and many Older Americans may be more trusting to a friendly pitch. Unfortunately by the time the Older American realizes that that he or she has been scammed, the damage may be beyond repair. It is important that they are protected and that we all try and prevent this type of abuse. The most common scams toward seniors are:

1. Foreign Lotteries

2. Home Repair or Improvement Scams

3. Telemarketing Schemes

4. Phishing

5. Phony Charities

6. Investment or Healthcare Scams

To find out more about these scams and how to protect yourself or someone you love, please contact the Arizona Better Business Bureau.

Phone: 602-264-1721 or arizonabbb.org

Seminar on Aging

tgranado — Thu, 29 Apr 2010 16:53:46 +0000

Are you concerned about your parents as they age and where they will live?

Not sure whether they can remain safe at home, eat nutritiously, take medications appropriately, and stay on top of doctors appointments?

Have you and your loved ones appropriately planned for the future?

Are risk management and legal issues in place to protect you and your resources?

Hear from experts in long term care and planning at this free seminar.

“You Have Choices” a Trends in Aging Seminar

Location: Sunset Library

4930 West Ray Road

Chandler, AZ 85226

Date: Monday, May 3rd

Time: 6:30 p.m.

For additional information, call 480-245-6103.

Appropriate uses for Special Needs Trust Funds

rwhite — Mon, 15 Mar 2010 15:00:11 +0000

A substantial number of people in need of long-term health care have too many assets to qualify for ALTCS, but not enough to cover the future costs of expensive medical treatment. Faced with this dilemma, many individuals mistakenly believe that their only option is to become destitute by spending all of their savings on health care before later applying for the ALTCS benefits. While this is indeed one option, it is clearly not one that is attractive. A better alternative involves creating a special needs trust.

Special needs trusts provide a way for people to retain their savings, while at the same time remaining eligible for public benefits. Assets in a special needs trust are not counted when determining eligibility for AHCCCS medical insurance, ALTCS long-term health care coverage, or SSI cash benefits. As such, applicants who would not otherwise be eligible to receive these public benefits may be able to qualify after creating a special needs trust.

The purpose of a special needs trust is to supplement the assistance provided by the public benefits that the individual is receiving. As such, once assets are placed into the special needs trust, the trust assets can only be used for allowable expenses. Trust assets used for impermissible expenses can be counted as income, causing the individual to be disqualified from public benefits. Special needs trust funds can be spent on the following types of expenses:

Home maintenance or repair.
School tuition and books.
Appropriate entertainment expenses.
Supplemental caregiver services.
Trust management expenses.
Prepaid burial plans.
Medical services not covered by public benefits.
Personal care.
Clothing.

A special needs trust provides a means for recipients of public benefits to improve their quality of life. By placing assets in a special needs trust to be used for their supplemental needs, individuals can ensure that their care and comfort are attended to, while remaining eligible for the public benefits they require. For a consultation with an attorney at JacksonWhite, please call (480) 464-1111 and ask speak to someone in the Elder Law department.

‘Tis the Season: Implications of Gifting on ALTCS Eligibility

ltownsend — Mon, 21 Dec 2009 16:17:21 +0000

‘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!

ALTCS Q&A: Married Keeping Separate Finances

ltownsend — Fri, 09 Oct 2009 21:16:43 +0000

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!

ALTCS Eligibility Q & A: Assuming a Mortgage

ltownsend — Thu, 27 Aug 2009 16:21:42 +0000

The Jackson White intake team recently fielded a call from a son whose father is in need of ALTCS services. The son stated that he is in the process of “assuming” dad’s mortgage. The home has about a $100,000 mortgage and the estimated Fair Market Value of the home is $240,000.

Question: Will assuming my dad’s mortgage pose a potential problem with ALTCS eligibility?

Answer: YES! ALTCS will see this as a transfer of the difference, or $140,000.
Therefore, dad is ineligible due to the assumption of the loan. They see this transaction as dad essentially giving away $140,000. In doing something that they thought was right for dad, it is now clear that they have actually caused major issues with eligibility and potentially some very severe penalties.

If you are getting ready to apply for ALTCS for yourself or someone else, please call for a free benefits pre-screen. We can help you determine if there are any red flags before you start.

Watch Out for Group Home Fraud

jpreston — Tue, 21 Jul 2009 00:17:24 +0000

We agree, at JacksonWhite, that there are many wonderful group homes that provide excellent care. They meet a niche in the long term care continuum that is certainly a valued addition. However…

If your loved one is in a group home or you are a social worker referring to group home – beware. If the group home is an ALTCS approved home- this means they agree to accept their contracted rate for payment for care under ALTCS. They CAN NOT ask the family to pay more in order for the client to be in the facility under ALTCS.

Please see our latest addition of the Senior News – there is an article about Medicaid Fraud – it will explain Double Dipping and rules against it.

If the group home does not like their reimbursement provided by the Program Contractor or feel that it does not pay enough, the group home can either renegotiate their contract to better reflect their costs or decide to NOT take ALTCS clients. Please do not be misled, group homes that agree to take ALTCS recipients are agreeing to allow them to stay for their room and board amount, plus the difference of their contracted rate paid by the ALTCS program. It is not the families responsibility to pay extra…. ONLY if the client is paying for something outside of the contract terms ( i.e.; private room) can they pay extra. It CAN NOT be a condition of admittance.

For those Social Workers referring to group homes, please do your clients a favor and check into this before you refer – dont let your clients be misled. It may be that another type of setting may be better financially – and ethically – for the client.

Check out our newsletter or call JacksonWhite if you need more information!!!

Medicaid Qualifying Trusts

emacdonald — Fri, 22 May 2009 23:11:07 +0000

In the 80s and early 90s, Elder Law attorneys often prepared irrevocable trusts that were suppose to help qualify a person for Medicaid should they eventually get sick. In these trusts, all of the parent’s money was transferred into a trust, giving the trustee (usually a child of the parent) discretionary control to use the money for the benefit of the parent. In 1993, however, Congress passed federal rules that, in effect, turned these trusts into Medicaid Dis-Qualifying Trusts. Medicaid programs now view the discretionary control as follows: If the trustee has any ability to give the Trustor (i.e. parent ) any money from the trust, they have the ability to give the parent all the money from the trust.

Sadly, there are many of these trusts that have been created that families believe are still valid. In fact, in one case, the family met with an estate/trust lawyer several years ago to ascertain whether it was valid. Because the lawyer did not specialize in the Elder law genre, she did not know about the odd change in the law; thus, she said to simply follow the trust as it was written. The problem with this advice is that, if the parent goes into the care home, the trust prevents any money to be used for the benefit of the parent; and, at the same time, ALTCS would not allow for eligibility based on federal law. Shortly stated, then, the parent could be left with no payment source for the needed care.

Our advice: The rules in this area of the law have and will continue to change. Thus, if there is concern for long term care in your family, you should seek consultation and instruction from an Elder Law attorney-even if you think you previously have.

Find Time To Plan For Long-Term Care

jallen — Wed, 13 May 2009 17:58:00 +0000

One of the more common mistakes people make when it comes to long-term healthcare is waiting too long before making any plans or preparations. This can cause problems if the person applies for a benefit program such as Medicaid/ALTCS. Making advance preparations can prevent these problems.

You should take steps to plan for long-term healthcare if you have a high probability of requiring future long-term healthcare. For instance, if you are diagnosed with a chronic disease such as Alzheimer’s, you will probably require long-term healthcare at some future time. You can prepare yourself for receiving such care by planning now.

Preparing for long-term healthcare means taking certain steps:

Educating yourself on the health decisions you will face.
Making sure your affairs are in order with your family.
Arranging your assets to maximize protection from the costs associated with long-term healthcare.

Protecting Assets for a Disabled Child

jallen — Fri, 08 May 2009 16:40:42 +0000

A major concern for many ALTCS applicants is the issue of preserving assets. ALTCS applicants can preserve assets to a varying degree depending on their particular circumstances. Whether the applicant is married or has dependent children heavily impacts the amount of assets that can be preserved.

It is generally easiest to preserve assets in cases where the applicant is married to a healthy spouse. Single applicants can still protect some assets when applying for long-term care assistance, but ALTCS requirements for single applicants are much stricter. Single applicants applying for ALTCS who have a disabled child are the exception to this general rule because the law aims to protect such children. An experienced Elder Law Attorney can take steps to protect assets for a disabled child whose parent requires long-term care.