To qualify financially for long-term care Medicaid in Virginia, you must have countable assets (“resources”) totaling $2,000 or less. If you are applying for Medicaid and you are married, your spouse who is not receiving Medicaid may retain countable resources valued at one-half of your collective countable resources, or $120,900 (in 2017), whichever is lower. Countable resources include (but are not limited to) bank accounts, investments, retirement accounts, and real property other than your primary residence. Non-countable resources include one automobile, certain types of savings bonds and irrevocable prepaid funeral contracts, household goods and personal effects, and your primary personal residence, if you or your spouse are living there.
If you are applying for Medicaid to help pay for long-term care services in your own home, your home will not count against you. If you are applying for Medicaid to help pay for long-term care services in a nursing facility, but your spouse is remaining in the home, the home will not count against you. If you are single and applying for Medicaid to pay for long-term care services in a nursing facility, then the home will not count against you for a period of six months, beginning on the date you left the home. After you have been out of the home for six months, if there is no spouse remaining in the home, it is considered a resource available to you and from which you should be paying for your long-term care expenses. To avoid having the home counted against you at that point, you will need to make a good faith effort to sell the home, by listing it for sale at its tax assessed value. Failure to do so will mean that your Medicaid benefits end, and you will be responsible for the entire cost of your care.
There are steps we can take to protect your home and avoid having to list it for sale, with a little pre-planning. In certain situations, it makes sense to transfer a home to an irrevocable trust as a part of five-year planning before the need for long-term care arises (the transfer is subject to Medicaid’s five-year lookback period). In other situations, we may be able to use the “caretaker child” exception and transfer the home without penalty to a child who has lived with you and cared for you for at least two years, preventing you from requiring care in a facility during that time. There are other exceptions and strategies we may use, as well – transfers to a blind or disabled child or to a sibling who has lived in the home for at least a year and who has some interest in the property, for example, may be made without penalty.
Medicaid’s rules and regulations are intricate and frequently misunderstood. For questions relating to Medicaid eligibility and how you may qualify, work with a professional who is well-versed in this complex area of the law.
Ask Kit Kat – Fake or Real Fur
Hook Law Center: Kit Kat, how can you tell if fur is fake or real?
Kit Kat: Well, I know all the rage now is fake fur, but you have to be careful, because some retailers are still using real fur and advertising it as fake or ‘faux fur.’ The word “faux” is French for false or fake. To tell the difference, separate the fibers, and look to the base of the item. If you see a weave backing, then it is fake or faux. Also, the ends of the fur will be more blunt, and not tapered, as they would with real fur. I am not sure what the motivation to use faux fur is, but the practice is continuing. Frequent sources of real fur are factory-farmed raccoons, dogs, and rabbits.
Thank goodness the Humane Society of the United States (HSUS) continues to monitor this situation. What they have found is not good news. All types of retailers from discount to high-end stores pass off real fur items as faux, when they are not. HSUS has alerted the FTC (Federal Trade Commission) that they have found 37 items sold by 17 retailers that are still using real fur. They make coats, footwear, purses, and keychains from the real fur. Up to now, the FTC has not fined any companies, but they have the power to do so. Pierre Grzybowski of HSUS says HSUS’ latest information is the result of 4 years of data collection. Until stronger action is taken by the FTC, the consumer can help by assuming that “anything that looks like animal fur might well be,” says Gryzbowski. Don’t fall for the fake products. Boycotting these items will speak volumes to retailers. (“Are you sure your fur is fake?” All Animals, November/December 2016, p. 9)
Distribution of This Newsletter
Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post Will Medicaid Take My House? first appeared on SEONewsWire.net.]]>
A person who had a disability prior to age 26 may now setup an ABLE Account, and anyone may contribute to such account; provided, however, that total contributions to the account may not exceed $14,000. The person with the disability may use the money for “qualified disability expenses,” such as housing and basic living expenses. The utilization of the ABLE Account funds for such purpose will not be considered in-kind support and maintenance. To demonstrate the value of these accounts, I am going to use two common examples:
Parents Did Not Charge Rent: Ron’s Case
Ron is a 19-year old with Down Syndrome who lives with his parents. Ron just started to receive SSI; but, because his parents do not charge him for food or shelter, he receives a 1/3 reduction of his full benefit amount due to in-kind support and maintenance. The monthly household food and shelter expenses total $2,175, and because Ron is one of three people living in the house, he is responsible for a total of $725. Because of the reduction in income, Ron is unable to start paying his parents his pro rata share of the household food and shelter expenses. An ABLE Account is established for the benefit of Ron, and Ron’s parents contribute $2,000 to the account. Ron will pay his parents his $725 share of rent (from a combination of his SSI check and his ABLE Account). The rent payments will be reported to the Social Security Administration, and the Social Security Administration will then increase Ron’s SSI check to the full $735. To continue to receive the full benefit amount, Ron must continue to pay his parents rent. (Bear in mind that earned and unearned income may also factor into Ron’s benefit amount, but this is for a later discussion).
Household Expenses Too High: Jackie’s Case
Jackie is a 35-year old with Cerebral Palsy who lives with her sister. When Jackie moved in with her sister, her pro rata share of household expenses totaled $1,000 and the full SSI benefit was not sufficient to cover her pro rata share. As a result, Jackie received a 1/3 reduction in her benefit due to in-kind support and maintenance. Jackie established an ABLE Account and the Trustee of her Special Needs Trust distributed $5,000 to the account. Jackie can now pay her sister $1,000 to cover her pro rata share of the expenses (via SSI and her ABLE Account). The change in circumstances will be reported to the Social Security Administration who would then increase Jackie’s SSI check to the full $735 a month. From that point forward, Jackie’s Special Needs Trust will continue to distribute money into her ABLE Account so that she can continue to pay her pro rata share of household expenses and receive her full SSI check.
Ask Kit Kat – All About Skunks
Hook Law Center: Kit Kat, what’s the latest information about skunks, and what should you do if your pet has encountered a skunk?
Kit Kat: Well, this can cause some problems you might not anticipate, though, generally, your pet’s encounter with a skunk can be quite harmless. Usually, the skunk gives some warning before employing its ultimate weapon—the spray. Initially, you may notice the telltale smell, but there may be other symptoms like drooling, sneezing, or vomiting. More severe symptoms can emerge a few days later like lethargy and pale gums. If the more severe symptoms appear, immediately take your pet to the vet to be checked. In most cases, the severer symptoms occur after a direct spray to the face.
Now, how to deal with cleaning your pet after a potent spray. Ordinary pet shampoo will not be strong enough. You will need to make your own mixture composed of 1 quart of 3% hydrogen peroxide, ¼ cup baking soda, and 1-2 tsps. of dishwashing liquid. Lather your pet well and let it sit for about 5 minutes. Then, thoroughly rinse with lots of water. If your pet has long hair, you may want to consider clipping them before shampooing, because a shorter coat will foster more effective results. There may be some bleaching of the fur with this procedure, but it is not harmful to them. Repeat as necessary.
To prevent your house/property from being attractive to skunks, there are several things you can do. First, if you store food in your garage/shed like bird seed or dry pet food, make sure it is in well-sealed containers. Second, make sure areas around decks are blocked, so they cannot make their home there. Third, keep exterior lights at night on or install motion-activated lights. Skunks do not like light. Fourth, discourage their nesting in your yard by sprinkling kitty litter in front of their den/hole or stuffing it with twigs and leaves. This will let them know, that they are not welcome.
Hopefully, with this knowledge, you will be well-equipped to handle your pet’s skunk encounter. If your pet is actually bitten, you should take your pet to a veterinarian right away. Skunks can carry rabies, and prompt medical attention could be crucial. (“Pets and Skunks: A Smelly Dilemma,” ASPCA Action, Issue #3, 2016, p. 8)
Distribution of This Newsletter
Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post Maximizing Your Child’s SSI by Utilizing ABLE Accounts first appeared on SEONewsWire.net.]]>
As a reminder, ABLE accounts are for blind or disabled individuals whose blindness or disability occurred before the individual’s 26th birthday and i) who are entitled to benefits under the Social Security Act (SSI or SSDI); or ii) who self-certify that they have a condition listed on the Social Security Administration’s list of compassionate allowances conditions and have a signed qualifying disability diagnosis from a qualified physician; or iii) who self-certify that they have an eligible disability and have a signed qualifying disability diagnosis from a qualified physician. ABLE accounts may be opened by the disabled individual in his/her own capacity if he or she is 18 years of age and competent to make financial decisions for him or herself. If the disabled individual cannot open the account independently, a guardian or attorney in fact acting under a valid durable power of attorney may open the account on the individual’s behalf. Parents can open such accounts on behalf of minors. All accounts can be opened online at able-now.com.
ABLE accounts, similar to the 529 education accounts they are modeled on, allow for contributions to grow free of federal and state income tax and for distributions for “qualified disability expenses” to be made free of federal and state income tax. A “qualified disability expense” is one which is incurred at a time when the individual is eligible (as described above), which relates to the person’s blindness or disability and which helps maintain or improve the person’s health, independence and quality of life. This standard is quite broad and can include education, housing, transportation, employment training and support, assistive technology, health, financial management, legal fees, funeral and burial expenses etc. It will be important to track and account for these expenses, because the total distributions from the account will be reported to the IRS annually. Maintaining detailed records and receipts will be an important part of administering an ABLE account. Failure to use the money in the ABLE account for a qualified disability expense (or to be able to prove such expense) will subject the withdrawal to a 10% penalty and the individual will include the amount of the withdrawal in his or her income. It is also possible that such non-qualified funds could be counted as income or as a resource for means-tested benefit programs. An important side-benefit of contributing to an ABLE account is that Virginia allows an income tax deduction of up to $2,000 per contributor.
ABLE accounts are limited in some very important ways. Contributions to an ABLE account are limited to the amount of the annual gift tax exclusion, currently $14,000/year. This limit applies to contributions from all sources, so the account cannot be used to shelter large sums of money. Furthermore, upon the death of the disabled individual, any balance in the ABLE account is subject to payback to Medicaid for funds paid by Medicaid on behalf of the disabled individual after the creation of the account. Finally, for disabled individuals collecting SSI, balances in an ABLE account in excess of $100,000 are counted as an asset for determining eligibility for SSI (but not for Medicaid eligibility). Although Virginia currently has a ceiling of $500,000 on the assets that can be in an ABLE account, ABLE accounts are not a substitute for Third-Party Special Needs Trusts or for First-Party Special Needs Trusts because of the limitations on annual contributions and the Medicaid payback requirement. However, they can function very well as an adjunct to a well-conceived plan to care for individuals with disabilities. An ABLE account can be a way to provide independence for some individuals who are able to manage their own financial affairs and may be an excellent repository for unexpected inheritances or for extra savings.
If you would like to discuss how to utilize an ABLE account in your planning for a person with disabilities, contact one of the experienced attorneys at the Hook Law Center so we can help you make sense of possibilities.
Ask Kit Kat – Sea Turtles in Danger
Hook Law Center: Kit Kat, what can you tell us about sea turtles in the Outer Banks and how they are faring during this cold patch of weather?
Kit Kat: Well, the sea turtles who overstayed their normal residency in the Outer Banks are having quite a time this winter. Temperatures have been unusually cold. Even though, the cold snaps don’t last for days on end, they are still a danger to these warm-water, loving creatures. According to Jeff Hampton of The Virginian-Pilot, “turtles cannot move when water temperatures fall below 50 degrees.” Most have left the area by now, but a few get fooled by a warm fall, and forget to leave to go south for the winter. Fortunately, for them, they got delayed in the right place to get expert treatment!
8 green sea turtles, one loggerhead, and one Kemp’s ridley turtle were rescued from the beaches of Pimlico Sound over the weekend of December 10-11, 2016. They were rescued by staff from the North Carolina Aquarium-Roanoke Island, volunteers from the Hatteras Network for Endangered Sea Turtles, and rangers from the National Park Service. The turtles were then treated at the aquarium’s rehabilitation center. It’s a slow process. They are gradually warmed by a rate of 5 degrees per day, until reaching their normal body temperature. The treatment involves administering fluids and analyzing their blood. Some even require antibiotics if they happen to also catch pneumonia. Once they are stabilized, they are released to a beach further south, but they must first be able to swim and eat normally.
This current rescue effort was quite small compared to last year. At that time, the rescue teams were overwhelmed with the number of turtles needing care when caught in a prolonged cold snap. Rosemary Lucas, coordinator of the rehabilitation center, said they had tubs of warming water all over the center—even in hallways and bathrooms. Contributions from the community help in these efforts. If you would like to donate to this cause, you may do so online at ncaquariums.com/roanoke-island with the code SEATURTLE2016. Contributions by check may be sent to NC Aquarium, 374 Airport Rd., P.O.Box 967, Manteo, NC 27954 with the notation of STAR or SEA TURTLE in the subject line. (Jeff Hampton, “Stunned by the cold,” The Virginian-Pilot, December 14, 2016, p. 4)
Distribution of This Newsletter
Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post ABLE Accounts Open in Virginia first appeared on SEONewsWire.net.]]>
In 1993, Congress amended the Medicaid statute via the Omnibus Budget Reconciliation Act (OBRA) to recognize the use of special needs trusts. The purpose was to ensure that the funds allocated to a person with a disability is not subject to exploitation or waste while preserving the person’s eligibility for means-tested public benefits. The problem; however, is that OBRA limited the establishment of such trusts to a parent, grandparent, or legal guardian of the person with a disability, or a court of competent jurisdiction. The statute failed to recognize the ability of a person with a disability to establish their own trust, and also lead to the implementation of various rules from the public benefits offices that led to the implementation of various rules that further complicated the establishment of the trusts and detrimentally impacted an individual’s benefits. Various agencies started evaluating things such as where the initial funding of the trust came from and whether a parent acted under that authority of a power of attorney, and thus on behalf of the individual, instead of acting as a parent, in establishing the trust.
While it may take some time for states to implement the new law under the state code and for public benefit administrators to incorporate the change in policy manuals, there is finally light at the end of the tunnel. Hook Law Center, P.C. would like to thank advocates, in particular the Special Needs Alliance (SNA) and the National Academy of Elder Law Attorneys (NAELA), for their hard work over the years in helping bring this issue to the attention of lawmakers and in working so diligently to get the Special Needs Trust Fairness Act passed.
Ask Kit Kat – PetSmart Charities
Hook Law Center: Kit Kat, what can you tell us about PetSmart Charities and their gifts to the Norfolk SPCA?
Kit Kat: Well, this is a terrific story! On November 28, 2016, the Norfolk SPCA completed the terms of a grant paying for the spaying/neutering of 1,390 cats in Norfolk. The grant was awarded nearly two years ago. It paid mostly for the trapping, neutering, and releasing of stray cats back to the place in which they were found. As part of this process, the cats were placed under anesthesia, and at the time of the spaying/neutering, they were also given an eartip (slight trimming) on the left ear to indicate that they have been fixed.
This was the second PetSmart Charities grant awarded to the Norfolk SPCA. The first grant which lasted from 2012-2014 paid for the sterilization of 1,200 cats who had no discernible owners. Sterilization prevents homeless cats from constant birthing of kittens, who themselves in turn, will become homeless with no source of food and shelter. Though the grants have expired, the Norfolk SPCA is pleased to offer this same service at the nominal price of $40 per feline to cats found in Norfolk or any other jurisdiction brought to their doors. Thanks to all who contribute to the Norfolk SPCA! This is where some of your monetary gifts are directed. Feral and homeless cats are a tremendous problem nationwide. In the prime breeding season of April-November, thousands across the United States are born every year. Anything that can be done to put a dent in this homeless population is a wonderful gift to these homeless felines, who must search for shelter and scavenge to feed themselves under difficult conditions.
If you would like to learn more about the Norfolk SPCA’s outreach to feral cats, visit their website at www.NorfolkSPCA.org under the “Outdoor Cats” tab. Their clinic which handles the majority of feral cats is called the Sabre Road clinic, 757-383-6620. (info@norfolkspca.com, December 1, 2016)
Distribution of This Newsletter
Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post Special Needs Trust Fairness Act Passes Congress first appeared on SEONewsWire.net.]]>