Douglas had to place his mother in a nursing home. Douglas consulted a social worker who told him that he should spend his mother’s assets down to below $2,000 and then, for a small fee, the social worker would prepare the Medicaid application for his mother and everything would be taken care of.
Douglas spent his mother’s assets below $2,000, paid the social worker $2,500 to prepare the Medicaid application and was told everything was good to go with his mother.
After about four months, Douglas had not heard anything on the status of the Medicaid application and the business office at the nursing home told him that his mother’s account was $35,000 past due. After a few frantic calls to the social worker, Douglas found out that his mother’s Medicaid application was rejected by the Medicaid office because of some prior gifts his mother had made to set up college funds for Douglas’ three children.
Because the Medicaid application was rejected, the nursing home is demanding that Douglas immediately pay the $35,000 past due account or the nursing home will evict his mother. Additionally, the nursing home is telling Douglas that he is personally liable for the payment of the bill because he signed as the “responsible party” at the time his mother was admitted to the nursing home.
Fortunately, we were able to reverse the decision by the Medicaid office on appeal and qualify Douglas’ mother for Medicaid. Douglas would have saved himself a lot of money and stress if he would have consulted with an elder law attorney with expertise in protecting assets from long term care costs this office first and retained them to complete the Medicaid application correctly. I explained that it is almost never in the best interest of the Medicaid applicant to spend down all of their money. There are legal ways to protect a person’s savings if it is done correctly.
The filing of a Medicaid application is a complicated process. There is no room for mistakes.
Firm News
It can be an honor and a burden to be appointed trustee of a trust. What responsibilities have been thrust upon you? How do you successfully carry them out?
Brad is quoted in a MarketWatch article entitled, "Caring for Older People's Finances can Boost Independence," dated May 21, 2015. To read this article, click here.
Brad is quoted in an article entitled "Long Term Care Insurance: It's Not for Everyone." Please click here to read this article.
Brad is quoted in an article entitled "Navigating the Complexity of a Long Term Care Insuarnce Policy. Click here to read this article.
The recent case of Clark v. Rameker, 134 S. Ct. 2242 (2014), the U.S. Supreme Court unanimously ruled that inherited IRAs do not qualify for the bankruptcy exemption afforded to a debtor's own retirement accounts. Heidi Clark and her husband filed for Chapter 7 bankruptcy and claimed an IRA that Heidi had inherited from her mother as exempt. Originally, the Wisconsin Bankruptcy Court ruled that Ms. Clark’s inherited IRA was not exempt as a retirement account. After winding through federal district court and the Seventh Circuit Court of Appeals, the U.S. Supreme Court heard the case. The Court unanimously ruled that inherited IRAs do not qualify for the bankruptcy exemption afforded to a debtor's own retirement accounts. The Court’s ruling was based on three factors differentiating between an inherited IRA and a beneficiary’s own IRA:
1. The beneficiary of an inherited IRA cannot make additional contributions to the account. An IRA owner, however, can make additional contributions to the account.
2. The beneficiary of an inherited IRA must take required minimum distributions from the account regardless of how old the beneficiary is. An IRA owner, however, can defer distributions at least until age 70 1/2.
3. The beneficiary of an inherited IRA can withdraw all funds anytime, for any reason, without a penalty. An IRA owner must generally wait until age 59 1/2 to take distributions without incurring penalties.
Brad is quoted in an article in MarketWatch entitled, "Who's Getting the Beach House? Tell Your Heirs Now." Click here to read this article.
Brad is quoted in a recent CNN Money/Genworth article entitled, "The Biggest Threat to Retirement Planning." Click here to read this article.
Brad participated on a panel, "Legalized Marijuana Update," at the annual Conference of Western Attorney Generals held in Park City, Utah in July 2014. Participants in the panel included: John Suthers, Colorado Attorney General; Bruce Turcott, Washington Assistant Attorney General; David Blake, Colorado Deputy Attorney General and Tim Cullen, Parter OpenVAPE.
Brad is quoted in a recent Market Wealth article entitled "How a Parent's Health-Care Bills Could Hurt You." Click here to read this article.
GAO released its report on long term care reform. It's a starting point. Click here to read the report.
To investigate a nursing home for a loved one, you may contact the local Ombudsman program to identify facilities that can meet your needs. It is a free consumer advocacy program.
Brad was recently on Dr. Sam Brinkman's "Neuro Matters Radio Show. Please use this link to listen to this interesting show. http://cdn.voiceamerica.com/health/011384/brinkman060314.mp3
Washington, DC – The National Academy of Elder Law Attorneys (NAELA), an association of attorneys dedicated to improving the quality of legal services provided to older Americans and individuals with special needs, is proud to announce its appointment of Bradley J. Frigon, CELA, CAP, of Englewood, Colo., as President of the 2014-2015 Board of Directors. Frigon will begin serving as NAELA President on June 1, 2014.
Recent Social Security Administration (SSA) rules have the potential to impact the validity and administration of special needs trusts. This article addresses important implications of paying for third party travel and paying third parties for goods and services with the funds of a special needs trust.
Working with trustees and beneficiaries who find themselves in changed circumstances can present very difficult roadblocks in the administration of a trust. It is tempting (and justified) to bemoan the fact that Colorado has yet to put a decanting statute into place. With some creative problem solving, though, it may be possible to achieve the same result that a decanting statute offers.
It appears that Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs), Medicare Part C and Part D private carriers, also come into the fold as entities that parties will have to deal with regarding Medicare secondary payment subrogation rights as these private carriers begin seeking reimbursement for payments made for services in which Medicare is a secondary payer.
It appears that Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs), Medicare Part C and Part D private carriers, also come into the fold as entities that parties will have to deal with regarding Medicare secondary payment subrogation rights as these private carriers begin seeking reimbursement for payments made for services in which Medicare is a secondary payer.
