The only module based, learning program that answers the question: “what happens if I outlive my assets?”–has just been released. This is a one-of-a-kind program that will help you face every long-term care decision and determine exactly how government benefits can help offset all or a portion of the extraordinary costs.

Every program is explained in great detail- step-by-step, how you qualify. Nothing has been left out. 

Visit: http://ultimatealzheimersrescue.com for details.

My Alzheimer’s long-term care program is almost done and I’m stunned at the number of people who have already signed up for my priority notification list. In fact, it’s almost full and I’ll have to shut it down this weekend.  

For a Video Sneak Preview of what this program will be about, go to: http://www.payingforalzheimerscare.com/Video_Preview.html

Just a quick note, that after a lot of struggling to find the time to work on something really big and a lot of prodding from my amazing subscribers.. (not to mention my Grandma) I’m just about done with a “big package” on how families facing Alzheimer’s can pay for the extraordinary costs of long-term care. My subscribers will be getting a preview in just a few short days.

To find out what this program will be all about, (and find out how you can get member’s only pricing and bonuses from some of the top Alzheimer’s experts) visit my site to get my free ebook and get on my list.  But you have to hurry. Announcement coming very soon.

http://www.PayingForAlzheimersCare.com

We’ve talked before about annuities, but I wanted to let you know that I’m seeing more and more change out there on how annuities are treated. 

An annuity is usually a financial product someone purchases where they trade a lump sum of money in exchange for a monthly stream of income plus a little interest. And, for some, they are a good thing. But for a family facing Alzheimer’s, you have to be very careful. The likelihood of your loved one needing nursing home care down the line, and having to either immediately or eventually qualify for Medicaid to pay the extraordinary costs is very high.

If set up the wrong way, an annuity can seriously harm your chances of getting Medicaid, or at least subject you to long penalty periods where you would be ineligible. In general (it depends on your state) annuities have to be irrevocable, non-assignable, expected to return at least all of the principal and some interest during your loved ones expected lifetime and name the state as a remainder beneficiary. Again, your state’s rules may vary. 

Many annuities don’t meet these guidelines. I’ve seen people with annuities that were issued when the person was 80 yet will pay out up to 40 years.  I’m no mathematician, but that sounds like right around 120 years old! 

Just be cautious, do your homework and make sure any annuity you purchase meets requirements you can live with. 

For more information and a FREE ebook on Paying For Alzheimer’s Care, head on over to http://www.PayingForAlzheimersCare.com 

Did you know that even seemingly innocent things like adding a son or daughter as a joint owner on an account can be viewed by Medicaid as a transfer of assets? We talked last time how transfers of assets for less than fair market value can create long periods of ineligibility. Well when most people think of transfers, they only think of the obvious-things like giving a loved one a gift of cash or giving them a car or maybe even transferring stock into their name. 

But, even things like adding a son or daughter as a joint owner on an account can be considered a transfer of assets for less than fair market value. To understand this, you have to understand the mentality of the Medicaid agency. In their eyes, it’s the same thing as you handing a big pile of cash to your son or daughter and saying “here” take this!

Sounds absurd right? Well, unfortunately, it happens all the time. And then, the burden is on you to prove that that was not your intention. 

For more information on paying for Alzheimer’s care and a FREE ebook, head on over to http://www.payingforalzheimerscare.com

I see it everyday in my practice.  A family member comes to see me because their money is quickly running out and they must put their loved one in a nursing home. They want to know how they can qualify for Medicaid to try and preserve at least some of their loved ones’ hard earned income and assets.

But through mis-information over the years, they have gone about things in the wrong way. Two of the biggest mistakes I see are:

1. The person with Alzheimer’s Disease gave away or loaned money to a relative, or a family member listed on a joint account thought that they needed to move the money away from the account to protect it-so they transferred it-either to themselves or someone else.

2. The family member who may have power of attorney provides care for the person with Alzheimer’s for several years in home, and may be compensating themselves out of the bank account of the person with Alzheimer’s. 

Both trigger “transfer of asset” problems. What is the transfer of asset rule Medicaid follows? It differs from state to state, but in general this is a rule that Medicaid applies to determine if someone gave another person property or money for less than fair market value. In other words, if there was an actual fair market exchange (i.e. money for services) then Medicaid may not have a problem. But, if someone gave away his or her money to a relative, or the relative pays themselves as compensation without properly documenting that service, Medicaid is likely to view this as a transfer of assets for less than fair market value.

The result? If this transfer occurred within what’s called “the look back period” (currently 5 years in most states), then Medicaid can apply a penalty for that transfer and deny your loved one the ability to receive Medicaid paid nursing home care for a number of months or even years.

For more information on Paying for Alzheimer’s Care and a FREE ebook head on over to http://www.PayingForAlzheimersCare.com

I often have families come to me and proclaim that they would never need to go on Medicaid. “Isn’t Medicaid for poor families or families with limited resources?”  Consider this: A spouse has $200,000 in savings, a home worth $300,000, a car and some personal property.  The husband has had Alzheimer’s Disease for 6 years now, and unfortunately, it has steadily progressed to the point where his wife must place him in a skilled nursing facility.  That facility charges $5,000 per month.  The wife believes that she has too many assets to qualify for Medicaid, and so continues to pay privately, month after month, year after year.  

You can guess what happens can’t you? Only 3 years into his stay, their savings is now gone.  Four years later, the wife who has had a stroke and has burned through what Medicare will pay, needs to be in a 24 hour skilled nursing facility. How will she pay? Unless she has very high income (which most people at her age don’t), she will be required to use Medicaid paid nursing care.  Let’s assume further that the couple has a 45 year old daughter with special needs who cannot care for herself. Had they considered Medicaid as an option when the husband first needed care, that $200,000 may still be around to care for the daughter. 

The moral of the story is that Medicaid is not just for poor people. It is for anyone who has saved a little money, maybe has a house and does not want to see it all disappear almost overnight.

For more information on Paying For Alzheimers Care and a FREE Ebook head on over tohttp://www.PayingForAlzheimersCare.com

In general, you can use a variety of methods to have assets under an acceptable level for VA qualification. Use of a trust is just one method commonly used. For VA qualification you have to look at two things: 1) Income-your income must be under what they call the Maximum Annual Pension Rate. So if for example, your husband is in need of “Regular Aid and Attendance,” then you are potentially entitled to the Maximum Annual Pension Rate of $1,842 per month (the maximum in the category of Aid and Attendance-note there are 2 other categories.)

But in order to qualify, your income must be less than $1,842 per month. However, it’s important to remember that the VA allows you to subtract all Unreimbursed Medical Expenses from your gross income. Typically, a family facing Alzheimer’s has very high expenses and can easily qualify on the income side once they subtract Unreimbursed Medical Expenses. 2) Assets-Assets for a married couple must be about $80,000 or less not including a home. That’s where planning and use of trusts and other documents can come into play.

It’s very important to note that while the VA does not have strict rules about how, where or to whom you transfer income or assets to qualify for VA, Medicaid has very strict rules. Many people facing Alzheimer’s will go on to need Medicaid paid nursing home care. The main message is: if you are going to try and qualify for a VA Pension, you must do so in a way that does not prevent you from receiving Medicaid down the line.

We’ve talked before about countable vs. non-countable assets, but one thing that must be considered as well is that Medicaid also looks at transfers of property, money etc that have occurred. In general, if your loved one with Alzheimer’s needs to apply for Medicaid, they will look back at all transfers that took place over the last 5 years (depends on your state) to see if they were proper or improper.

If Medcaid believes an improper transfer took place, they can apply a penalty period for a transfer. So if for example your mom needs to go into a nursing home and apply for Medicaid, but 2 years ago she gave you $40,000, this may be viewed as an improper transfer subject to a penalty (it was within 5 years of the date she is in the nursing home and applied).

The penalty means that your mom would have to wait out a “penalty period” until she is eligible for Medicaid to help pay. It’s not just gifts of cash that can subject your family member with Alzheimer’s to a penalty, so it’s very important to at least have a good understanding of how the rules work, so that you can plan accordingly.

For more information and a FREE ebook on paying for Alzheimer’s Care-head on over to http://payingforalzheimerscare.com/

When a family member has Alzheimer’s, it’s often neccesary to seek the assistance of Medicaid.  Medicaid will want to know all resources (assets) available to the person applying. However, this does not mean that they will count all resources.  Generally, there are countable and non-countable resources. When I say non-countable, this means that although they must be disclosed, Medicaid will not take them into consideration when determining whether your loved one qualifies.  The following is a list of assets that in most states are considered non-countable:

• A home, if the applicant has an intent to return home (generally up to $500,000 in equity)
• One automobile
• Personal effects
• Life insurance with a total face value of $1,500 or less
• Property used in a trade or business

It’s important to keep in mind though that while Medicaid can’t typically count these assets to determine if your loved one with Alzheimer’s is eligible for Medicaid, the concept of Estate Recovery can be used to take these assets after a person has passed away to pay Medicaid back.

We will talk more about Estate Recovery soon.

For a FREE ebook on Paying for Alzheimer’s Care, head on over to http://www.PayingForAlzheimersCare.com today!