Download - Whats Next Workshop 2010
MEDICAID AND ESTATE PLANNING: HOW TO DEVELOP A PEACE OF MIND
P. Haans Mulder, JD, MST, CFP®
Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
What’s Next Workshop 2010
Background• Partner at Cunningham Dalman, P.C.• Masters in Tax, CFP®, and specialize in
estates/elder law and business planning• Cunningham Dalman, P.C. has been serving
the greater Holland/Zeeland since 1900
Serving the Holland area since 1900
Overview• Medicaid process and eligibility rules• Example of how Medicaid planning works• Parts of an estate plan and process• Most common types of estate plans
Serving the Holland area since 1900
Did you know?• 40% of people 65 years and older will
stay in a nursing home• Average cost to stay in a local nursing
home is $6-7,000/month
Serving the Holland area since 1900
What is Medicaid?• State and federal program that pays
for medical treatment (including nursing home care)
• Oftentimes confused with Medicare
Serving the Holland area since 1900
When does Medicaid apply?• Must be in a nursing home• Applies to people who are 65 years or
older, blind, or disabled• Must pass the income and asset tests
Serving the Holland area since 1900
Who does Medicaid apply to?
• You cannot have enough income to pay the monthly cost of staying in a nursing home ($6-7,000 in this area)
Serving the Holland area since 1900
Who does Medicaid apply to?
• A single person cannot have more than $2,000 in countable assets
• Can keep your home (it’s not in your trust) and a vehicle
• All other assets are countable
Serving the Holland area since 1900
Who does Medicaid apply to?
• Asset test allows a married couple to keep their home (again, if it’s not in a trust), a vehicle, and one-half of their other assets
Serving the Holland area since 1900
Example• Clients were husband and wife• Wife had to go to a nursing home• Didn’t stay in a hospital for three days
so Medicare didn’t cover stay• Had house, vehicle, and investments
Serving the Holland area since 1900
Example• Could keep the house (because it was
properly owned) and their vehicle• Without any Medicaid planning, they
would have had to spend down one-half of their investments
Serving the Holland area since 1900
Example• Drafted a trust that allowed them to
protect all of their investments (as opposed to just half)
• This provided peace of mind to the husband
Serving the Holland area since 1900
Did you know?• You could save approximately $5,000
by having an estate plan prepared for $850
Serving the Holland area since 1900
What is estate planning?• Process of planning for the future
management and distribution of your assets and your future medical care
• Includes documents such as wills, trusts, and powers of attorney
Why is it important?• Reduces the cost of administration• Minimizes stress for family and friends• Determines who will receive your assets• Authorizes who will make your medical
decisions
What is probate?• Probate is a court process to administer
a deceased person’s financial affairs• Required when someone passes away
with assets in his or her own name or fails to name a beneficiary
Why avoid probate?• It is a public process • Can exacerbate family situations• Can be expensive to administer
(between 3-8%)• Takes time to complete (6-9 months)
What are the most common estate plans?
• Basic plan includes wills (potentially with a trust) and powers of attorney
• For clients who do not have a house or are not concerned with avoiding probate
What are the most common estate plans?
• Other plan includes a living trust, pour-over wills, and powers of attorney
• Plan is designed for clients with grown children and who desire to avoid probate
What does the estate planning process look like?
• Complete estate planning questionnaire• Attend a meeting that we discuss your
goals and the types of estate plans
What does the estate planning process look like?
• Review draft of documents• Attend a signing conference• Change beneficiaries or/and fund your
trust
Questions……
Serving the Holland area since 1900
Thank YouP. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
Serving the Holland area since 1900