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Medicaid Planning Pros And Cons
Summary
Hiring a certified Medicaid planner can be cost-effective but may lack comprehensive legal advice. An elder law attorney offers broader legal knowledge and representation but at a higher cost. In Colorado, Medicaids 60-month look-back period can penalize improper asset transfers. A wish letter isnt legally binding; a will or trust is recommended for asset distribution. Setting up an irrevocable trust can avoid penalties if done correctly, unlike gifting, which may incur penalties. Elder law attorneys typically charge hourly rates or flat fees, not based on assets. Medicaid application timelines vary, and consulting an attorney can provide clarity. Be cautious of advice contradicting standard Medicaid rules. Consulting an elder law attorney is advisable for personalized guidance.Full Conversation
yes, The planner my sister and I are considering hiring for services said one requirement to reduce my mom's assets is to have her make a $* gift to my sister, and possibly me if it dies not effect my own medicaid coverage the funds would go into a bank account under my sister name and my mom would no longer have control or ownership over those funds.
Gifting assets to reduce Medicaid eligibility can be complex. In Colorado, Medicaid has a "look-back" period of 60 months to check asset transfers. Improper transfers can lead to penalties or ineligibility. Have you consulted with an elder law attorney about this strategy?
No. But sounds like you thin I should. This medicaid planner explained that this is a sure way to reduce my mother's assets and tat upon her death the funds, though legally my sisters, would be distributed according to my mom's wishes. How can a wish letter be enforceable]e in this case after her death?
In Colorado, a "wish letter" isn't legally binding for asset distribution after death. Instead, a will or trust is needed. It's advisable to consult with an elder law attorney for personalized advice, especially to avoid penalties from Medicaid's look-back period. Would you like to connect with a local elder law attorney?
You wrote "stead, a will or trust is needed.". How is it possible have control over that bank account through her will?
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A will can dictate the distribution of assets owned by the deceased at the time of their death. However, if the bank account is solely in your sister's name, it is legally considered her asset, not your mother's. To ensure your mother's wishes are followed, consider setting up a trust, which can provide more control over asset distribution.
A will can dictate the distribution of assets owned by the deceased at the time of their death. However, if the bank account is solely in your sister's name, it is legally considered her asset, not your mother's. To ensure your mother's wishes are followed, consider setting up a trust, which can provide more control over asset distribution.
Would setting up an irrevocable trust be penalized the same percentage as the gift money to my sister's bank account?
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Setting up an irrevocable trust can have different implications compared to gifting money. Here are some general points:
- Irrevocable Trust: Assets in an irrevocable trust are typically not counted for Medicaid eligibility if correctly established.
- Gifting: May incur a penalty during Medicaid's *-month look-back period.
Consulting an elder law attorney is recommended to ensure proper strategy and compliance with Medicaid rules.
Setting up an irrevocable trust can have different implications compared to gifting money. Here are some general points:
- Irrevocable Trust: Assets in an irrevocable trust are typically not counted for Medicaid eligibility if correctly established.
- Gifting: May incur a penalty during Medicaid's *-month look-back period.
Consulting an elder law attorney is recommended to ensure proper strategy and compliance with Medicaid rules.
I meant before applying for Medicaid. "Would setting up an irrevocable trust be penalized the same percentage as the gift money to my sister's bank account?"
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Setting up an irrevocable trust before applying for Medicaid can be a strategic move. Here's how it generally works:
- Irrevocable Trust: If correctly established, assets in the trust are not counted for Medicaid eligibility, potentially avoiding penalties.
- Gifting: Typically incurs penalties during Medicaid's *-month look-back period.
Consult with an elder law attorney to ensure compliance with Medicaid rules.
Setting up an irrevocable trust before applying for Medicaid can be a strategic move. Here's how it generally works:
- Irrevocable Trust: If correctly established, assets in the trust are not counted for Medicaid eligibility, potentially avoiding penalties.
- Gifting: Typically incurs penalties during Medicaid's *-month look-back period.
Consult with an elder law attorney to ensure compliance with Medicaid rules.
-" Irrevocable Trust: If correctly established, assets in the trust are not counted for Medicaid eligibility, potentially avoiding penalties." ok, too truly get some direction, established inside the 5 year look back so it is not exempt from bei g counted. zzzzzzzzzzzzzzwhat is the expected penelty.
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In Colorado, if assets are transferred into an irrevocable trust during Medicaid's *-month look-back period, penalties can apply. The penalty period is calculated by dividing the value of the transferred assets by the average monthly cost of nursing home care in Colorado. Consulting an elder law attorney is advisable to better understand the implications and avoid costly penalties.
In Colorado, if assets are transferred into an irrevocable trust during Medicaid's *-month look-back period, penalties can apply. The penalty period is calculated by dividing the value of the transferred assets by the average monthly cost of nursing home care in Colorado. Consulting an elder law attorney is advisable to better understand the implications and avoid costly penalties.
I meant before applyong but still inside the 5 year look back, Say a few months before applying?
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Transferring assets into an irrevocable trust a few months before applying for Medicaid may result in penalties if done within the *-month look-back period. Consulting an elder law attorney can help you navigate these complexities and minimize potential penalties. Would you like to connect with a local elder law attorney for more tailored advice?
Transferring assets into an irrevocable trust a few months before applying for Medicaid may result in penalties if done within the *-month look-back period. Consulting an elder law attorney can help you navigate these complexities and minimize potential penalties. Would you like to connect with a local elder law attorney for more tailored advice?
Before I do that, can you set up the questions I asked in a manner that the attorney would understand what I am asking?
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Here’s a structured summary of your questions and responses:
*. Pros and Cons of Hiring a Certified Medicaid Planner vs. Elder Law Attorney:
- *Certified Medicaid Planner*: Lower cost, specialized focus on Medicaid applications. Limited legal advice.
- *Elder Law Attorney*: Broad legal knowledge, can provide representation. Typically more expensive.
*. Gifting Strategy Concerns:
- Planner suggests reducing assets via $* gift to your sister. Concerns about Medicaid penalties due to *-month look-back period in Colorado.
- Query about enforceability of a "wish letter."
*. Asset Distribution After Death:
- A "wish letter" isn't legally binding; a will or trust is recommended. A trust provides control over asset distribution.
*. Irrevocable Trust vs. Gifting:
- Irrevocable trust assets typically not counted for Medicaid if correctly established.
- Gifting may incur penalties during the look-back period.
*. Penalties for Transfers within the Look-back Period:
- Penalty calculated by dividing asset value transferred by average nursing home cost in Colorado.
Would you like to connect with local elder law attorneys for more tailored advice?
Here’s a structured summary of your questions and responses:
*. Pros and Cons of Hiring a Certified Medicaid Planner vs. Elder Law Attorney:
- *Certified Medicaid Planner*: Lower cost, specialized focus on Medicaid applications. Limited legal advice.
- *Elder Law Attorney*: Broad legal knowledge, can provide representation. Typically more expensive.
*. Gifting Strategy Concerns:
- Planner suggests reducing assets via $* gift to your sister. Concerns about Medicaid penalties due to *-month look-back period in Colorado.
- Query about enforceability of a "wish letter."
*. Asset Distribution After Death:
- A "wish letter" isn't legally binding; a will or trust is recommended. A trust provides control over asset distribution.
*. Irrevocable Trust vs. Gifting:
- Irrevocable trust assets typically not counted for Medicaid if correctly established.
- Gifting may incur penalties during the look-back period.
*. Penalties for Transfers within the Look-back Period:
- Penalty calculated by dividing asset value transferred by average nursing home cost in Colorado.
Would you like to connect with local elder law attorneys for more tailored advice?
Maybe. What is the average amount of money I might spend to pay an elder law attorney to help me with my unique situation? Would they bill according to my mom's assests? It is actually $*,* to be moved into my sister's account.
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Elder law attorneys in Colorado generally charge hourly rates ranging from $* to $*, or they might offer a flat fee for specific services. They usually bill based on the time and complexity of the work, not directly on the client's assets. Consulting a few attorneys for estimates tailored to your situation is advisable.
Elder law attorneys in Colorado generally charge hourly rates ranging from $* to $*, or they might offer a flat fee for specific services. They usually bill based on the time and complexity of the work, not directly on the client's assets. Consulting a few attorneys for estimates tailored to your situation is advisable.
From the information you have gathered, what length of time might it take to actually apply for medicaid through an elder law attorney?
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The time it takes to apply for Medicaid through an elder law attorney in Colorado can vary. Generally, the process can take anywhere from a few weeks to several months, depending on the complexity of the case and the information required. Consulting with an attorney can provide a more accurate timeline.
The time it takes to apply for Medicaid through an elder law attorney in Colorado can vary. Generally, the process can take anywhere from a few weeks to several months, depending on the complexity of the case and the information required. Consulting with an attorney can provide a more accurate timeline.
Do the medicaid planner has determined the penalties to set my mom back only 6 months, According to them they said most info on the internet is wrong or missing, They said they know the medicaid codes. What do you think of that?
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It's important to be cautious with advice that contradicts widely accepted information, especially regarding Medicaid. Penalties are typically calculated based on transferred asset amounts and nursing home costs, not just codes. Consulting an experienced elder law attorney can provide clarity and ensure compliance with Colorado Medicaid rules.
It's important to be cautious with advice that contradicts widely accepted information, especially regarding Medicaid. Penalties are typically calculated based on transferred asset amounts and nursing home costs, not just codes. Consulting an experienced elder law attorney can provide clarity and ensure compliance with Colorado Medicaid rules.
Is there an FAQ that I can read that might help me better understand all of the topis we discussed?
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While I don't have a specific FAQ to share, here are some key points you might consider:
- Medicaid's *-month look-back period and penalties.
- Differences between elder law attorneys and Medicaid planners.
- Legal implications of gifting and trusts.
- Asset distribution through wills or trusts.
For more detailed guidance, consulting an elder law attorney is recommended.
While I don't have a specific FAQ to share, here are some key points you might consider:
- Medicaid's *-month look-back period and penalties.
- Differences between elder law attorneys and Medicaid planners.
- Legal implications of gifting and trusts.
- Asset distribution through wills or trusts.
For more detailed guidance, consulting an elder law attorney is recommended.
Ok. Thanks so much fir all of your help. Have a great day!
Case Rating: *
It sounds like you're dealing with a complex Medicaid planning situation. Consulting with an elder law attorney could offer guidance tailored to your mother's specific needs, especially regarding asset transfers and penalties. If you reconsider, connecting with a local attorney could be beneficial. Have a great day!
It sounds like you're dealing with a complex Medicaid planning situation. Consulting with an elder law attorney could offer guidance tailored to your mother's specific needs, especially regarding asset transfers and penalties. If you reconsider, connecting with a local attorney could be beneficial. Have a great day!
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