Estate Planning and Elder Law Hour - 7.8.17

Saturday, July 8th

00:52:34

Check out the very first show! Some much information. Enjoy!

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”

Skip was born and raised in Aurora, Colorado, graduating from Smoky Hill High School.

To learn more about Wills, Trusts, Powers of Attorney, Living Wills, Probate, Asset Protection and Medicaid, visit skiptonlaw.com

To sign up for a workshop go to skiptonlaw.com or call 720-440-2774

To ask a question, click here to email Skip.

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Hey happy Saturday afternoon everybody I'm skip Reynolds an estate and elder law attorney. And welcome to the estate planning an elder law hour with skip Reynolds this is our very first show so I'm super super happy to be here. And so glad that you're listening. And I hope in the future that you'll tune in to hear more about estate planning an elder law topics. Just to kind of give you a taste of some of the things that will be talking about. But during our show as we go on. Is how to pay for long term care what is Medicaid what our trust to revoke Coble trust irrevocable trusts. Wills when did they come into play how did they work with our assets. What are powers of attorney what are the different types which ones do I need who should I be considering to have on those documents. Wind is my living will come into play. What about DN ours what about these new laws that we come up with all the time. What about probate. And so much more so listen every week is will be talking about these in many more topics as Mosul have guests on almost every single week to talk about different. Topic areas within estate planning an elder law. If there's anything you guys want me to discuss please please please do email me at info. At skip attend law dot com that's IN FO at skipped in SK IP. TO and law dot com. Or visit the crews in 1430 website MI show page or you can go to my website at WWW. Skipped in the law dot com. So yes my name is skip it is shore for skipped in yes my parents did Naimi this I'm never met anybody else with my name. They actually found in a book is crazies MEP. Common shares many of you can attest you may have not liked your name when you're a kid. That was definitely mean but now I do like my name because it's different in people seem to remember it. So that's kind of a little bit about what we're gonna talk about but before I dive into huge topic areas and specific things. I think it's really important for you'd understand why I do estate planning an elder law. And and why it's so important to me to you beyond the radio and talking with you and educating you because that's what the show's gonna be all about his education. What are the things that you need but it things you don't need what are the pitfalls what are the stories that people do. They we shouldn't do or we should do so that we can have a better experience for our families so a little bit about me I am a Colorado native. Grew up here in southeastern roar went to smoky hill high school. When I was growing up I was actually a swimmer. And so when I graduated from high school. I L went off to University of Kansas so those of you that are Casey or Missouri fans. On you can already is start to hate me or maybe I'll win you over and you'll like me. So went out there actually to swim when I graduated years ago. At that time you weren't able to swim division one for men's here in the state of Colorado unless you into the air force academy. Kudos to all of you. Folks out there they did go to the air force academy unfortunately I was not ready for that leveled a commitment and each eighteen. So when not to Kansas became the jayhawks win out there for four years. After graduating from there I went back to schooling got my masters in business administration. From the University of Wyoming so as you can see as kind of jumping all around our area here but my family was from Wyoming and went back up there to get their master's degree. Being the swimmer that I was when I graduated. I actually didn't go straight back into law school as I I practice now I went out to San Diego won it's you live with a buddy be a surfer dude. He might notice that from the intro music a little bit a surf music form because it is kind of my personality. But I went out there to serve try to find a job it was back in 2003. If any of you recall job market wasn't Dan fantastic at that time. So I headed back to you Colorado. Applied to law school went back to the University of Wyoming and got my degree from the University of Wyoming. Pass the bar in 2008. But didn't actually go to work in the capacity that I work in today. My first job was action working for a life insurance company here in Denver. I'm working with financial planners around the country on how to utilize our products. With if there. Advanced attacks and as the state planning tools so that we can deal four with their clients' assets. But I think you really give me agreed background so different and so many other people in my profession. And that I saw the financial side of viewers Steve planning world not just the wheels are the trusts are the powers of attorney. I saw how do we integrate your assets into these plans. And I think he gave me a nice background for what I do now so I've been running my firm solo since 2012. And I'm a small firm boutique firm here in Centennial. But I do workshops all around town talking about the Steve planning an elder a lot topics. But that's kind of my background I don't talk about. Do you wise I don't talk about divorces that's not what's happening in my practice. Everything that we're gonna talk about on this show are things that I discuss in my office with clients every single thing. But that's about me in my back Kumble why do I do what I do. Because I think it's important to understand. Why I am in a steep climbing. So I don't know if any of you out there I've ever had. The situation where. You've been drawn some direction in you can't really explain why you're being drawn that direction. That's happened to me twice and the same grandmother has done it to me. As crazy as that may sound first time was why did I even wanna go to the University of Kansas some from Colorado. While I was I'm moving to the flat lands of Kansas. Well I knew that my grandmother was from Kansas but I do know she was from a small town fifteen minutes outside of Lawrence Kansas where I went to school. And when she talked about this river she talked about the call river and how her mother would never letter go down near the river. Well I didn't understand that the call river was actually the Kansas river and now's the slayings in that area for the Kansas river which meets in Missouri River in Kansas City. When I went on my visit it was 35 degrees mid march and it was super cold in my mother asked me so would you think. And I said I love it and she said you what. Passage I love it she couldn't understand what was drawn me that direction I don't think I could either or fast forward to where I am today. My grandparents lived here in town. On as they get older they went into you assisted living. And they work so hard their whole life said three kids during the depression my dad was born during the war. And even with all their hard work. They just didn't have a whole lot of resource as they had enough to pay for their assisted living in that was about it but they hadn't really planned for the unexpected. And unfortunately for them the unexpected occurred. My grandmother developed dementia. And her to venture continued to progress into a point. Where she could not stay at DC still living that they were living at any longer. She easy goes someplace where she can get better care. For what her issues where. The problem was is they hadn't planned for that type of occurrence. Because really what I do for my clients is I help you. Take care of your families when you're gone. And have your families take your view how do you wanna be taking care of wall you're alive because Steve claiming in my office is all about family. And my grandmother my grandfather hadn't planned for the unexpected. And they lost that control. And their family wasn't able to keep them together and they weren't able to care for them the way that I know that they would have preferred to have been cared for. And so my grandmother had moved to a nursing home in a crisis. Across town and sued until my grandfather passed away in 93. He Joseph multiple times a week from their Rory Denver border. To wheat ridge to visit my grandmother not only is it sad they were separated but it's also sad because. It was probably not safe for him to be on the road at that point. Probably not safe for any of us that might have been on the road with him but also because they had lost control and they didn't get to end things the way they want it. So back to why I do what I do I want you and your families. To know. What things you want and what things you don't want. And make the right decisions based upon a good education. So that you can have a better experience and have more control. So that your family can take care of you and you can take care of your family whatever that looks like for you. That's why I do what I do now. And I was drawn this way I think so that can give clients a different experience in my grandparents' house. All right so enough about me you didn't come to listen to the show just a year about me you wanna learn something. So before I get into that I wanna talk about kind of my goals for the show as we move forward I won't do this every time so just bear with me here. So my number one goal of this show is to educate you. On the different topics within estate planning an elder law what are they what are the pitfalls what are things you should consider. There are more than one way to do a lot of these things. Number two I wanna give you the big questions that you need to ask yourself so that you get the right plan free. It could be simple it could be complex. It really doesn't matter to meet its about you asking yourself the right questions so you get the right answers at the right time. And on any news stories to go through all of these things. Talking about who you know what are the stories and what are the consequences of these decisions good and bad. So you can start to learn okay well I knew some of the of the did that and yet they had a bad experience or no they had a good experience because it kind of a funny deal. Like so many parts in our lives. We hear things from our friends our co workers our neighbors our families we now have our own experiences. And from most things we draw out little bits and pieces and we say okay this is the way it is. We serve piecing these things together and we may quit all called the ball fact. But some of you may remember some of you may not there used to be radio personality par hole Paul Harvey. What did he always say. And that's the rest of this story. So my goal on the show is to give you the rest of this story. So we can take down bald fact that you built up over your lifetime inserted take it apart and give you the rest of the story CU make the right decisions for you when your family. And we don't have unexpected or unintentional. Are consequences for the decisions that we make so that's kind of my goal of the show. But but what is the state planning in my practice. Com. Somebody told me a story here recently and I really liked this story and what it is is when you go on vacations say you're going to the Caribbean or somewhere warm Florida let's say. And you forget your sweater. Because you think you know it's gonna be warm. I'm not gonna need a switcher or sweater many get down there it's one of those cloudy days and the breezes coming off the ocean it's kinda cool. Or you got on the airplane and air conditioners on too high near kind of cold on the airplane or your cold in the restaurant. And you wish you had that sweater really what estate planning is in my offices. Were giving you that sweater. So that when things are going how you would expect them to go. We've planned ahead and we have the sweater to keep you warm and have things happen the way you want. Giving you back back control. So a lot of people come in my office over the years. And they've got all kinds of different goals for their state plan. And the number one goal of people when they come in in my office is a wanna stay in control I wanna stay in control of my assets. I wanna stay in control of my health care decisions whatever that may be for you. The second goal that they have this I don't wanna become a burden on my loved ones. So if I get sick or if I need help I don't want them to. Have a birdie in or I don't want to leave them with a birdie and after I passed away. Having to deal with my steed my assets. And the next one is that they wanna keep it simple. Now I think that there's different definitions of simple. Sometimes simple is understandable I understand it my family understands it it's not going to be difficult to deal with. Sometimes that's good but I think did the other part of simple sometimes is I don't see a whole lot of value in these things. And so therefore. I don't really want to deal with it too much right don't wanna deal with it at all or don't want to pay very much for it because these scenes are all just formalities. But really my goals for people's plans when they come in my office or a little bit different. My goals are that my clients know if what you have if you have any type of a state plan is just a document. Or does it have your voice inside of the document as well is it just piece of paper that you got from somewhere because there's so many resource is these days. I also want you'd understand all of the costs. Where your decisions whether deal liability would there be taxes whether be other kinds of things and how to minimize those costs. And then knowing what your options are so the you can choose. The plan that's right for you and your family. Because these tools are the same. But everybody's got their own fingerprint. On how they want this to work within their families so that their family again can take care of them and they can take care of their family the way they want. So the main topic of the show today. Is I'm going to be talking about. Myths around spending all of your money on long term care cost I'm not talking about insurance. I'm talking about people thinking that if I get sick. I must go broke before. I can have any help and assistance. Paying for this care. Because we all know that the cost of care is not going down and it's really really expensive at this point. And I'll go through some of the costs of go through all miss him we have around that. And then we'll talk about what are some solutions in decline experiences that have happened in my office then maybe were something you had no idea where even available. Because I think again going back to have all the facts we have ideas around things that may or may not be true. So stick with us after the break we'll come back we'll talk about busting those myths spending all your money a long term. Or cost. This is the estate planning an elder lauer would skip Reynolds we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds. Hey there are bodies were back this is again skip Reynolds with these deep planning an elder law hour here on cruise in 1430. They if you missed any of this show. We will be available on podcast both on the coups in 1430 website as well as on my website at www. Skipped ten law dot com that's SK IP. TO NL. AW. Dot com skipped in law dot com. So as we went out last time right for the break we're talking about busting myths around spending all of your money on long term care costs. So we're gonna kind of dive right into this right now but I but first I wanna talk about. What are the costs and what do they look like it different levels I think some of us have some idea maybe even have experience with it because we have. Friends or family that are may be going through this experience right now. But what do they look like because most of us if you were to be honest with yourself. Would prefer to have our care at home. And that's usually where it starts right we need somebody need to come in and help us clean. Or we can't cook safely anymore. Or maybe we need help doing a few things around the house and so we start having in home health come in. What does that cost right now. And and I think we can all agree that it's not a costs it's going to be going down anytime in the future. So right now just to have somebody come in the home. 25 to thirty dollars per hour for them to come in the home. And depending on the home care agency and now have a guest here on next week talking about home care and what it looks like for you. And she'll give you some more of the details from the inner world but. 25 to thirty dollars an hour and they may have vote requisite of five hours per week or more. So what could that look like cost wise for you well on the low side. Per month just minimum amount of care might be 500 dollars that's not too much but if you need round the clock care and you wanna stain your home and you need. In home care or even skilled care in the home you are looking at potentially eat teen thousand dollars. Per month or more depending on your care needs. I don't know about you but my pocketbook can't cover that for very long neither can my assets. What about independent living okay so we don't wanna live at home may be on. We're living alone we want a little bit more in Iraq she and we wanna play bridge you wanted to do bingo whatever that might be for you. I'm we can go to independent living some of these independent leanings I mean when you walk into them they're like a hotel. And I have some people come on the show in the future that work at these independent and assisted livings they can tell you about what it is like in their place. If you haven't been in one of them they're not witchy things they were used to be. On. People didn't wanna live in on the if they were bad so obviously we made the nicer so that we wanna go there and live in them. But independent living on the low end here in the metro area you're looking at potentially 2500 dollars per month. For independent living. And as usual costs for one of the nicer places might be three to 5000 dollars per month. Here in the area. Then you go up to the next level assisted living where you may be needs some more care some more skilled care but you don't need round the clock care. On he can still living in an apartment but now maybe the need help you give medicines or other kinds of things. The low end there starts at 3500 a month. If you need memory care it could be 7500. Or more per month or memory care. And that's just what the flat fees are because some of these places around town. Are also charging up charges for other services that you may need so 7500 might be the starting point he might actually paying something much more. Fact actually have a client. Right now in memory care this paying close at thirteen thousand dollars per month and his wife is in independent care for 5000. You do the math that's a lot of money every single month. How we gonna pay for these things and the cost is rising every year. What about the nursing home everybody's worst nightmare right nobody ever wakes up and says. And can't wait to Murrow move into the nursing home today or hey this stroke sounds good mom walking down the street. Or whatever it might be we don't want this but it is a reality. And that's why we have them and we have family members and friends or maybe you and us that might end up there. Nursing home costs can start as low as about 6000 dollars some of those might be just small homes where it's kind of a group home setting. On the average cost of a nursing home in the metro area is around 8500 dollars per month. Which is a lot of money or what happens if you're a couple in your both in the nursing home. Now you got that super high cost arm I've got clients in different nursing homes around town there charges are over 9000 per month. So it's a big issue this how were we gonna pay for this care because we in retirement in particular. Only have so much money. You know we have what we've saved we've you have what we're getting an income whether it's from Social Security errors from pensions. Or whether it's coming from our saved up assets like our retirement accounts or bank accounts are aware of who we have our money saved. How are we going to pay for this and how fast our is our money got Iran now if our life takes a right hand turn. Because like I said no one ever wakes up and says OK I feel like not living in my house today. And going to assisted living independent living nursing home. Necessarily know there are those exceptions right. Can't say everybody's that way but most of us would prefer to be home as long as possible because that's where we feel comfortable. But that's not all of our realities. So how how do we pay for this. Well really there's in my wish in my opinion there's three main ways that we pay one way is we pay for it with our own money. So we use our assets that we save during our lifetime bees are income coming in from whatever source that might be. And we pay for our care wherever that scare me be in the home or elsewhere. Or and you can all start to laugh now our kids will pay for us right. Because all of our kids have enough money to pay for their own lives in our lives to. On some of us are lucky enough that our kids can do this but I would say in my experience most of us don't have that. Fallback. So if you don't have the money in your kids don't have the money now we have other issues and we'll talk about that here in a bit. Or there are alternatives out there such as long term care insurance which I like into additional source of income to help pay for your care. Okay well. All right so I'm gonna have a long term care specialist commending talk about what is long term care because I think there's a lot of ideas around it. A lot of misconceptions around it on and and he'll talk a lot more about. What is long term care what are the different types of policies what are the things you should be looking for. Because in my experience. There's some good reasons why people don't buy it but there's also some devil in the details even if you do you have it. Because you'll hear stories of well they didn't pay for moms care because of XY and Z. And the devil was in the details of the policy that they had bought and spend their hard earned money on. So what are the different types of long term care where there's that I understand since I don't sell long term care myself being stated in an elder law attorney. Well there's your traditional long term care where. You pay and you pay you pay you pay you pay. And if you just pass away and you never got sick you're never needed any level of care. You just paid in you paid in UK UK. Well most people don't like paying for pure insurance. I'll speak for myself here on car insurance we pay for it but whenever we have a minor fender Bender do we make a claim. Or do we go pay for ourselves our premiums don't go up. It's similar type of experience I think with traditional long term care for so many of us is set. We don't like the fact that we may not get to use it and so we didn't decide to buy it. Or we thought it was too expensive that's often. A common thing that said to me is always so expensive. So let me give you a quick little story. So sometimes. And we do this in lots of areas rural life and I'm guilty of it to you. We buy things. Are we don't buy things because of how much it costs two day not considering that that same thing may cost more in the future. So many give you an example let's just. Play pretend here and say that. Somebody's long term care policy cost some 5000 dollars a year it's no less than 500 dollars a month for this policy. OK so 5000 dollar seems like a lot of money too many of us and I can think of a million things I can do with 5000 dollars other than pay for long term care. But I've got 5000 dollars and I paid this now for twenty years 'cause I've bought the policy I bought it yet safe 55 or sixty. And not paid for until announced 75 or eighty announcer our you have some health issues in maybe I need somebody to come in in and help me out with things. OK so over twenty years at 5000. I'm not a mathematician but this is simple math. That would be somewhere in the neighborhood of a 100000 dollars that's a lot of money. And if you just passed away with some of these. All its time that traditional policies he'd just been a 100000 dollars for pure insurance and people there in my dad so they didn't buy it. But let's look at the other side of the point. If you've got sick Eddie 75 or eighty and that's just pretend that you gut. Really say you had that stroke on respectively. Now you can't take care of yourself. Now you need somebody to care for you round the clock baby you're not even mentally totally with it at that point. Now let's look at the costs that I just went through. If you wish to do worse case scenario let's say it's 9000 dollars a month. I don't know about you we you're gonna run through a 100000. In less than a year. Vs having twenty years to pay 40 and by the way if you got that same exact illness and you had some kind of long term care benefit. Now that men if they can kick in to help offset the cost. Of that high level of care than 9000 or whatever it is for you. So that now with your income with the long term care benefits we are not pulling is heavy on your assets because what is. Most people's number one fear other then dying in public speaking. Running out of money. Long term care can help you not run out of money as fast. It's an additional source of income to help pay for this but we don't buy it and it gives you less control over where you receive your care. But that's the old forms oval of long term care that are still around fewer fewer companies are offering in now. There's also alternatives out there and when I bring in the long term care specialists he'll go more in depth on these that there are now policies that we can buy with life insurance. If you're still ensure herbal. That you can add an extra piece on and we call that a Ryder. And the rider can say well if he gets sick he can use the death benefit towards year long term care. But if he just pass away just left say 250000. Or whatever the death benefit is your family. A lot of people like that as an option now is it the best option in I don't know. Is it. Better than having nothing in my opinion yes because my job as he stayed attorney. Is not to sell you this policy but it is to inform you that this is a way for you to protect your assets. And that's what my job is is to help you protect your assets from whatever is concerning to you and long term care for many people is a big concern. There's also other options out there that are within duties if you're not ensure a bowl on. You know there's differing opinions on these things. On totally truthful. Do you duties are just a minor patch input in comparison to those traditional long term care. Or life insurance but. And as the old adage goes it's better than a stick in the eye. But again. Talking about the costs today vs the price down the road. You get to have more control. Do you want deck here in your home. Do you want to be an independent living do you wanna be in the is assisted living because we've got people in the nursing home right now. They would prefer to be somewhere else though because they hadn't saved writer because they had but long term care or and their health took her right hand turn. They are now in the nursing home. And they would prefer not to be there it's their worst nightmare and there's no worlds that we can put them to receive the level of care that they need. Because that's the real. If we don't wanna be a burden on our family we can't moving in their house. Because that Danny is a burden on their family they've got their kids their spouses. They're trying to run their lives in fort trying to avoid being nabbed birdie and we need to try to take care of ourselves. As well as protect our assets from these high costs. So that's long term care we can pay ourselves we compare with long term care. For those of you that are veterans out there may be a spouse of a veteran on whether it's so widow or widow where. On you may be eligible for of veterans aid and attendance pension. Armed if you needed long term care help. You need to meet specific dates of service you need to have a special long term care need. He also needs you need asset and income requirements first is the cost of your care so many ways this in attendance pension. While the requirements right now or different than say a program such as Medicaid. On very similar in its scope in that. It's not for everybody it's for those of us that are truly in those needs. Now there are things that we can do tell families qualify for this benefit in fact. There are companies out there are attorneys out there that can help families qualify for this including my firm. Bomb within thirty days or sixty days depending on. This time frame in dealing with whatever is going on for that family. Now qualifying for the veterans a nit attend his pension is different than them actually hang. As we saw discern any application in you know any kind of big organization isn't gonna turn that thing around. Really fast but. Most of our clients will get approved as soon as he gets through their processes. Messed there was something we didn't know about Morin told about ahead of time. I'm and we can talk to you about what are those dates what are that they care needs that you need to have to be eligible for this. Armed what are the asset requirements. All all just kind of forewarned you there is change on the horizon in fact give actually change the laws they just aren't enforcing them yet. It means change for over a year and a half. We just aren't enforcing them so I'm kind of honestly waiting for the ball to drop and the rules to change but we'll see what happens. As we go forward but we'd talk Tebow what that looks like for you. Com for those of you that are married in year this did the spouse or was. Other veteran green gets you over 2100 dollars a month if you qualify. To help pay for this care. Whether wherever that care may be. And if you the spouse in May be more in the range of about 11100 dollars. So there's a wide range of benefits out there to help us pay for the sinks. On kind of moving on the in the public benefits fear we've got community Medicaid as well. So community Medicaid is something that we can have in the home. So what I wanna do is a wanna take another break here and dive more into Medicaid and what deck can look like. Whether it's in your home assisted living for the nursing home and on minutes talk about some of these myths around to Medicaid. Because I think that there's a lot of misunderstandings about it. And owe you some stories to talk about client experiences. To kind of illustrate the point of how. Tom what many of us stinking is in that bald fact that I talked about in the first. Part is actually not true in any give you the rest of this story as Paul Harvey assess. So again you can email your questions in two the the website here entries in 1430 or to my web site. At WWW. Skipped in the law dot com you wanna call my office and you'd like to set up a consultation you can do that as well that's 170. 4402774. Soon come back we'll be talking about mr. on Medicaid. And giving you some good stories to take home with you today. This is the estate planning an elder law hour with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody begin this is skip Reynolds with you Steve planning an elder law our thanks again for joining us. If you missed any part of the show common touch a little bit about me at the very beginning and why I do what I do. And in new the last segment I was really talking about what is long term care how we paying for and how much. Does it cost. But I wanna take it in next step further here as we do we start this last segment. I wanna talk a little bit about Medicaid now I know there's a lot of things in the news these days about Medicaid how we gonna pay for it where it's the tax cuts gonna be too rich but to healthcare laws and everything else. We don't know what that looks like always confused you with the facts we have right now we'll see what happens in the future and Woolley just. But Medicaid is a way to pay for care. And to be frank. There are forty to 60% of the people in nursing homes right now on some form of Medicaid and there are varying forms of Medicaid. Out there available for us that are over 65 in particular to help pay for our long term care different day in the Medicaid he might have a few Eddie young family. So the first part is community Medicaid. To a treating Medicaid is is there are different programs out there now won't go through all the acronyms. That will allow us to have Medicaid pay for some of our care whether it be in our home or in the assisted living. Now they won't pay for all of our care but they will help pay for it usually somewhere in the neighborhood of 25 to 45 hours per week. But it is an option that most of us didn't even know was available. And then there's what I'll call just for easy reference full blown Medicaid that's when you're in the nursing home. On and they are paying the full bill on outside of what your income is offsetting. But I think that you know we know about Medicaid we hear about Medicaid sometimes getting confused with Medicare. People think that oh I get sick I go to. XYZ nursing home or XYZ assisted living. Or independent living my Medicare will pay for it. That is not the case. That is definitely a myth. Medicare will pay for your health care bill pay for your rehab. They'll pay for your doctor's visits your hospital visits they will not pay for your long term care if you're not going home. They are not pain and even at home if you need care they're not paying as well. Now there are some numbers in days that they will pay. But I will tell you this a lot of people have a thought especially kids. Debt oh mom's Medicare dad's Medicare will pay for this. And it's a big shocker when they feel this sticker price and they realize that the sticker price is coming out of mom or dad's assets. How we gonna pay for. So let's talk about what is Medicaid and some of the mitts a big miss the ball fact that we all kind of stacked in our minds. Number one myth that I hear from people is it they will take my home. Some people are even afraid that they're gonna sell the house out from underneath you even if you're living in it still. Which isn't the case. Some people to have a myth around it saying that. In order to try to protect your house or your bank account or your investments that you've got to give away those assets completely got a given year. Your friends or your family your kids mostly. To try to protect those assets. And when you give those away you gotta give it away fully meaning non take a bankable is what I say in my office. And then the third myth that goes around Medicaid is that if you give those assets away no matter wives. You can go on a program like Medicaid. For five years after having made that gift. Or we use it we call a sixteen months 'cause we do by months. Well depending on your family scenario whether you're single but he you're a married couple and wanna be needs care or even have both of you need care. Depending on those scenarios. All three of these things may be false. So we take these scenes we see okay these are the rules. But they may not be new rules that happen for you because Medicaid is a complex set of rules. And an exception to the exception to the exception into the exception. I kind of liken it he's kind of up a silly analogy it's kind of like sausage. There's all kinds of ingredients to sausage and we know it but we don't run wanna know it all those ingredients are we just want to know that it taste good when we eat it. And that's kind of a Medicaid is it's got all these ingredients you don't need to know all the ingredients that's my job that's the other elder law attorneys jobs. That's the people at the counties that are looking at the Medicaid applications jobs it's the State's job and health care policy and financing. You just need to know that if you fitting into these categories that it taste good and we can get the care that your mom and your dad or do you need. Any Medicaid can help us pay for that. So wanna give a couple of stories here because. I don't think most of us. Wanna go to Medicaid. I think there's also myths surround a fight go on Medicaid my care's going to be awful. Armed I don't know how many of you have been in TU some of the nursing homes around here. But I've been in nursing homes I was in one yesterday in Parker when I walked in. You would know that it's in nursing home. It is actually very very nice inside of there and you know it's nursing home and you would know who's paying with their own money. Who has long term care is helping them pay. Or who's on a veteran's pension or who's on Medicaid because it looks all the same. Now there may be facilities or are they call themselves communities out there that are all Medicaid in in May may be a different level. Depending on their location and in that the way that that community has been run. But I'll tell you right now. It is a myth that Medicaid. Is different then self pay in many of the communities where residents live in these days. So one until a couple of crisis stories here just to kind of give you a heads up on. What we can really have instill potentially beyond Medicaid because I think if people think. Did they have to be totally broke to go on Medicaid and that's not necessarily. The story now. I'll talk about other stories in other shows on these stories today are of couples where one person was sick. And the other person was not. On that the rules of the game do you change a little bit when it's just a single person on and then we've lost our spouse. But the first story. This is story I'm gonna use a different name so that. I knew he knows who this person is but but mrs. Smith so mrs. Smith is actually the daughter who called me about her mother. And her mother who was in a crisis and she needed to go into the nursing home when I see she needle in the nursing home she need to go into tomorrow. As soon as possible. In this nursing home that they were going into you was a Cadillac. And it was gonna cost some 101000 dollars a month because of some of the other services that she was gonna be provided there. But dad wasn't sick and he didn't want to move the nursing home but he couldn't care for mom. So we had to get mom into the nursing home. Well this family had used another attorney here in town. And did in their state plan and this attorney in the done a fine job. On but I kind of wanna go through what what to their assets look like and what did they think they were gonna lose. What did this other person tell them that they can do and then what did we tell them and what did they ultimately decide. So I'm gonna kind of throw out some numbers here on if you can follow along I hope he can. So this couple they had house they had a car. They had cash in the bank and they had investments. Similar to very to almost every single one of us. So they thought they add total assets Tom with the equity in their home in their car and their cash in their investments. Approximately 450000. Dollars. Now the question is how much do you defeat and we think they were going to lose. And the truth is they thought they were gonna lose everything they thought they were going to have to stand almost everything to pay for moms care. Before she can go on Medicaid. So what did they hear from the family attorney well the family attorney told them some good things and told them some not so good thanks. So the rules for a couple. That want to go on Medicaid are you got to meet three requirements first got to meet to help requirement. Got a need to care right. The second requirement is the income. But it's not the income of the couple it's the income of the sick person. The person that's not sick who won the staying in the home. There income is not counted towards the eligibility of the person we're trying to get on Medicaid. That is often a myth is that it's both of our incomes. Now that income requirement right here right now as I sit here today. For the sick person. Whether you're a single person or a couple. Is 2205. Dollars. Not a whole lot of income per month. Oh but wait there's an exception and we can make it much more than that. If we need to suggest because unique 3000 a month from Social Security in a pension. Doesn't mean you can't still qualify for that income requirement. But many people just stopped winning here the 2200. And they don't pursue it further is they don't know that there's an exception can take us to a higher number. Now these numbers change every single year. So just because it's that number today doesn't mean that it's not gonna change. Here July the first or January the first as we pass new laws or we have. Adjustments with inflation. So those are the first your karma it's health then income in the thirties assets. So the assets that we can have with the your single person or couple is you can have one home. And we don't count have to count the value. Of that home where the equity that we have in that home toward our asset requirement. Couple or single it's excluded so they're not going to take your home at least not while you're alive. And if you're a single person in you can exempt the house but you may not want to. Just because a great we exempt to the house but now we go on Medicaid and they're gonna recover from us after we passed away. There may be better alternatives and I'll talk about that. In future shows but out for the couple right now dismissed. It's 60000 dollars of equity. Off the books not accountable dad's living in the home mom's going to the nursing home as long as dad dies second. They're not coming to take the home away from him. He can also have a vehicle. So his car was worth 101000 dollars and Elliott 70000 dollars green clear. And this year we can exempt cash or any other investment. For dad up to 120900. Dollars who just short of a 121000. Dollars. T have a house a car in a 121000. Dollars. All off the books. Right away those are just exceptions that we all have as a couple if we need you go on Medicaid. Now this couple had an additional amount of about 275000. Dollars. In other cash and investments but all of that was potentially at risk. So there attorney what they told them to do is they said well let's go Foreman here revoke able trust in that's. Give these assets to the irrevocable trust none take a bankable as I talked about earlier. Goes into the trust OK great so now it's not take a back bull. But the daughter was in a hurry she said we gotta get this goal we got it I just called you because my sister come to one of your workshops. In he talked about this this experience this and we had as she sister that I call you but every month that we wade is another month before mom can go on Medicaid. Well the daughter thought that by putting the money in there they were going to have to use it for the next five years or sixty months. Pain for months scare in every month and we waited. Added another month to that payment schedule. Dominique Ternium not a mathematician. But they had 275000. Extra. At 101000 a month. My math doesn't tell me that last for sixty months. It tells me that it last for less than half of sixty months. They were going to be down to the levels where she would have qualified long before we got to sixteen months. Regardless of the myth of the gift. And you're gonna have to use that money through beer vocal truss and all these other avenues. So that's what they had been told. So I told the daughter Sydney these this in pro all since you'll letter. And I'll tell you what I think we can do forty. Using the exceptions to the rule all the ingredients of that sausage. So what did I tell them must she said it to meet a sinner back the letter in the next day she called me. And I was happy I was like well she called pretty quick she must've liked what I had to say the very first words out of her mouth were why are you lying to me. Now I can understand why she would say that because I gave very different answer than she'd heard from somebody else. But what it actually tell her why I told her that by using one of these exceptions out there. Mom was eligible now we need me the application and get the care that she needs and preserve the assets for dad. So that he's not broke because of mom's high health care costs. Only turnaround in the in the did hire me and we got mom in the nursing home and does a living at home and everybody's. Really happy. Now that's a story but where have you heard the you could have. 450000. Dollars in assets instilled all five for Medicaid as a couple if one of the needs to get that care. It's a myth people think you have to be completely broke and depending on these little exceptions are the pieces of this sausage. You may have a different experience. Only tell one more. Story very similar story. This one on the gains shelter their names this is the Jones is. So I got a call from mr. Jones and his wife mrs. Jones I had something called fry until temple temporal dementia. 68 years old he's seventy. He's saying to himself how long can I continue to work just to pay for her care come home care for her myself. It's gonna Wear me out real fast. Oh by the way as soon as I stop working or can't work now it's gonna deplete our resource is really really fast. So similar kind of assets for them they had a 133000. In their house exempt. Better car with 5000 exempts. They had other assets at about 141000 in the bank. They had about a 150000. In retirement accounts they had another 180000. In investments. As well as cash in their life insurance total assets of 513. Thousand dollars. We use another exception to the rule for this family. To protect. All of the ovaries so about 300000. Dollars we were able to protect forehand. Give her the care she needed in the home. Since then she's now had to go to the nursing home because your care need to increase too much. So he can continue to live the life that they had worked so hard for their whole lives just because her health has taken a right hand turn. He'd been told though prior to talking to us in coming to one of my workshops. That he was going to have to spend everything. We solve the big problem for both the Smiths and the joneses. Now can we solve every problem absolutely not. But what the point of these stories are these debt. Sometimes what we think are facts are not the facts. And we have to look further her and find out how the facts really play out for our families. Now I'm not telling you she go on Medicaid I'm not telling you medic easy answer for everyone so please don't take it that way. But ET Indian answer in the right situation. If you have the right knowledge in the right facts in front of the we help those clients in a way they never thought was possible and we can help you your family your friends in the same way. And we need help you do this within thirty days sixty days depending on scenarios. And possibly protect. A number of your assets from having to all be spent on someone's care if there hill. If you want to come to one of our workshops. I give two to three workshops every single month it different libraries around town right talk about estate planning an elder law and I go through stories like I just went through. Collison seven to 04402774. And you can come to a workshop or if you just wanna come any talk about a story like I just did. They talk about with the Smiths and Jones is we've set up a one hour consultation. If you reference that you Curtis on the arena here on cruise a 1430. And we will reach back out TU bar after you leave us a message on our voice now or you can email us at info at skipped in law dot com. Or he can go to our website here on the cruise of 1430 web site. Or on our website WWW. Skipped in law dot com. Have you referenced say you heard this on the radio we will shoot Cindy that seems short questionnaire that I sent to mrs. Smith. And then we can sit down and we can talk about what this looks like for you and what your picture looks like. So to kind of wrap up the show here we talked about a lot is our inaugural show thank you so much for joining me. But I give you a little bit about me and my background why I do Steve planning an elder law we talked about the costs of long term care. And the ways to pay for it. We also talked about Medicaid. And I hopefully showed you that what you thought might be facts around it may not be everyone's experience and that there are other options within it. So join us next week. I'm gonna have Cindy cooking here from all about seniors we're gonna talk about in home care and how to write find the right place for mom or dad. Whatever level of care they might need or even just get care for them in the home to join us next week we'll have some more fun will last hopefully joke around a bit. Thanks so much for a ride with this this week I hope you enjoyed this inaugural show and that you learn something and see next we get 2 PM here on cruise in 1430. You can Reynolds is a licensed attorney in Colorado all of the stories and content of this state planning an older life hour are not intended to be direct legal advice here for illustrative purposes only additionally new attorney client privilege has been performed with the law offices have been Reynolds LLC were stricken Reynolds Esquire which is seeking legal counsel before making any estate planning or elder lob city. All of the views of the guests of the show or their own and are not views of the law offices in Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices in Reynolds LLC was at the Reynolds Esquire.
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