Seniors want to live at home and independently and why not? In our experience, the most important and valuable asset is one’s home. So, how does one protect the home while also accessing Medicaid for long term care and a Reverse Mortgage for living expenses?

When meeting with seniors, one of the most valuable planning tools in our tool kit is the use of the Medicaid Asset Protection Trust.

Lenders have been unwilling to provide a reverse mortgage when the home is owned by this type of Trust, but we have just learned that at least one lender is willing to approve reverse mortgages even when the home is in this type of trust.

If the senior is uninsurable or can not afford the premiums of Long Term Care Insurance, then the only program available to pay for long term care is the Medicaid Program.

With the Medicaid Asset Protection Trust, seniors are able to place their home in the trust and still continue to receive all the benefits of ownership including the exclusive use of the home during their lifetime while accessing Medicaid. They have also taken a step to protect their home from estate recovery if they later need Medicaid nursing home care. Of course, the transfer will have to be greater than five years from the time Medicaid is applied for in order to be eligible for Medicaid nursing home care.

Now, if seniors need additional income to meet their living expenses, they will be able obtain a reverse mortgage and protect the home. It is very important to analyze if the reverse mortgage is the best choice for the senior before the senior takes this step.

For more information on these strategies, please contact Vincent J. Russo & Associates, P.C. at 1-800-680-1717. 

Questions for Aging Parents

A recent Real Simple magazine article examines how adult children and their parents can have an open discussion about their concerns, and together face the challenges of aging.  This discussion is often not an easy one to have; a 2001 AARP study revealed that three-quarters of adult children think about their parents' ability to live independently, but one-third of the children surveyed have avoided discussing the topic with their parents.  The results for parents are similar; a little over two-thirds said they think about their ability to live independently, but more than one-third said they do not discuss the subject with their children.  The article provided several conversation-starting questions that adult children can ask their parents.

Planning Tip of the Day

When life gives you lemons, make lemonade!

I love this mantra -- Today, life comes with many challenges: health care, finances and family matters. Sometimes, you can't control what happens.

Part D Recipients Must Repay Mistaken Refunds - Second Court Ruling

A federal appeals court has again ruled that 230,000 Medicare Part D beneficiaries who were erroneously mailed a premium refund do not have the right to apply for a waiver excusing them from repaying the money. Action Alliance of Senior Citizens v. Sebelius (D.C. Cir., No. 09-5191, June 18, 2010).

Another Budget Bill Behind Us

A very strong effort was made this year by the New York State Bar Association (NYSBA) Elder Law Section to combat proposed cuts that would adversely affect our seniors and those with disabilities. The following are two provisions that were in the original proposed Budget Bill.

Surrogate Decision Making Comes To New York

Inside The Medicaid Look Back Period

When faced with the possibility of penalizing an ill father for paying for the joyous wedding of his daughter, HRA approved the Medicaid application. Recently a wife sought our advice in obtaining Medicaid nursing home care for her ailing husband.

A Break Thru - On Reverse Mortgages

Seniors want to live at home and independently and why not? In our experience, the most important and valuable asset is one's home. So, how does one protect the home while also accessing Medicaid for long term care and a Reverse Mortgage for living expenses?

Ask The Expert

Thanks to Lynn Brenner of Newsday for her column, Ask the Expert. On November 5, 2010, she responded to a question regarding how to protect mom's home if mom needs Medicaid nursing home care. The daughter informed Ms. Brenner that her mother is 93 years of age, in failing health and her daughter has lived in mom's house since 1995.

Medicaid Home Care - NYC

It has come to our attention that CASA has begun requiring that applicant's applying for community Medicaid coverage need to complete a Resource Verification Attestation form. This form requires that the applicant/representative check off the type of coverage that is being requested.