Joseph McHugh is the founder and managing attorney at LA Law Center specialized in elder law, asset protection and estate planning (wills, Trusts and Probate). Kathy McHugh (his wife) is the Triage Director & Certified Senior Advisor that helps clients with Medi-CAL qualifications and recovery issues. Together with their staff, they can help you understand your options in doing long term care planning and basically “Getting Your Affairs in Order”! Their biggest passion at this time is educating people about their legal rights to transfer and protect their assets in case they need Medi-Cal in the future.
No one ever wants to be in a nursing home, but unless you can pay $25 an hour for in-home care ($18,000 a month for 24/7 care) you should do pre-planning JUST IN CASE!! Today many people want to stay in their home (typically paid off), but do not have enough money or income to do that if they need assistance with their activities of daily living or medical care. The Medi-Cal laws are changing soon. SO…we are standing on the rooftop screaming to anyone that will listen…
“IF YOU MAY NEED MEDI-CAL LONG TERM CARE BENEFITS IN THE NEXT
5 YEARS…CALL LA LAW CENTER TODAY!”
Today, until the Medi-CAL (Medicaid) laws change we can save almost 100% of all assets by moving them into a Medi-CAL Asset Protection Irrevocable Trust, but we are expecting to be limited to being able to save 50% or less when new law come in (expected to be adopted in California within next 18 months). If you think someone in your family is at risk of needing long term care in the next 5 years, it is critical that you totally understand how an ill person’s estate can be moved and be able to qualify for Medi-CAL if it becomes the only way this person can afford to be cared for 24/7.
Currently there are multiple ways to meet the rules and exemptions made for families to qualify for Medi-Cal. Under the rules in California, applicants are permitted to transfer assets out of their name during the look-back period without incurring a penalty (time where applicant will not get Medi-CAL benefits). Less fortunately, these rules are often confusing and difficult to implement without the expertise of an experienced Elder Law Attorney. Most traditional Estate Planning Attorneys do not understand this area of law.
Most professionals assume you cannot gift assets & must spend money on medical needs. This is not true, and has resulted in impoverishing a well spouse, and spending down needed assets that were not necessary!
Soon California will fall in line with the Federal Medicaid laws, so California will get more money from federal government to pay Medi-CAL disbursements…this means the rules will change and they will be much stricter! But if you do gifting now, it will be grandfathered in! The current laws are specific, and you really need an elder law firm to guide you through this process to ensure you create the least amount of penalties for Medi-CAL qualifications.
For example, in 2019, we can protect a house from Medi-CAL estate recovery… when the new Federal Laws come into California there will be a limit to how much equity can be in the house to be moved… it is expected to be no more than $750,000 of equity. This is problem in California as starter houses are around $600,000. It is critical you understand your options if you may be facing care needs in next 5 years!!
Joe and Kathy offer free phone or office consultations and can tell you your options before it is too late! Call 818.241.4238