alzheimer's association presentation
TRANSCRIPT
![Page 1: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/1.jpg)
MEDICAID, MEDICARE, VETERANS BENEFITS, AND ESTATE PLANNING: HOW TO DEVELOP A PEACE OF MIND IN UNCERTAIN TIMES
P. Haans Mulder, JD, MST, CFP®
Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
Alzheimer's Association-West Michigan
![Page 2: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/2.jpg)
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
![Page 3: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/3.jpg)
Overview• Medicaid process and eligibility rules• Example of how Medicaid planning works• Medicare Parts A-D• Transition from Medicare to Medicaid
Serving the Holland area since 1900
![Page 4: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/4.jpg)
Overview• Veteran’s Aid & Attendance benefit and
eligibility rules• Elements of an estate plan and what the
process involves• Most common types of estate plans
Serving the Holland area since 1900
![Page 5: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/5.jpg)
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 $6,500-7,500/month
Serving the Holland area since 1900
![Page 6: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/6.jpg)
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
![Page 7: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/7.jpg)
When does Medicaid apply?• Applies principally in a nursing home
(could apply in your home or an assisted living facility)
• 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
![Page 8: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/8.jpg)
Who does Medicaid apply to?
• Under income test, you cannot have enough income to pay the monthly cost of staying in a nursing home ($6,500-7,500 in this area)
Serving the Holland area since 1900
![Page 9: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/9.jpg)
Who does Medicaid apply to?
• Under assets test, a single person can only have $2,000 in countable assets
• Can keep your home (if it’s not in your trust) and a vehicle
• All other assets are countable
Serving the Holland area since 1900
![Page 10: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/10.jpg)
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
![Page 11: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/11.jpg)
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
![Page 12: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/12.jpg)
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
![Page 13: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/13.jpg)
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
![Page 14: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/14.jpg)
Medicare and Parts A-D• Medicare is a government insurance
program that has many aspects and is divided into parts
• Have to be 65 years old, be disabled, or fit specific criteria
• Part A covers hospital expenses
Serving the Holland area since 1900
![Page 15: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/15.jpg)
Medicare Parts A-D• Part B deals with doctor’s and out-
patient expenses• Part C is a private insurance plan that
covers your medical expense in general• Part D is your prescription drug coverage
Serving the Holland area since 1900
![Page 16: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/16.jpg)
Transition to Medicaid• Many people who are eventually
approved for Medicaid start on Medicare• Must have a three day hospital stay • Medicare will cover up to 100 days, but
there can be a co-pay after the 20th day
Serving the Holland area since 1900
![Page 17: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/17.jpg)
Veteran’s A&A Benefit• Veteran is eligible for up to $1,632 per
month (expenses must exceed income)• Surviving spouse is eligible for up to
$1,055 per month • Veteran with a spouse is eligible for up to
$1,949 per month
Serving the Holland area since 1900
![Page 18: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/18.jpg)
Veteran’s A&A Benefit• Will cover in-home, assisted living, and
nursing home care• Financial eligibility is based in general on
$40,000 of countable assets for a single person and $80,000 for a couple
Serving the Holland area since 1900
![Page 19: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/19.jpg)
Did you know?• You could save approximately $6,000
by having an estate plan that will cost you $850
Serving the Holland area since 1900
![Page 20: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/20.jpg)
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
![Page 21: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/21.jpg)
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
![Page 22: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/22.jpg)
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
![Page 23: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/23.jpg)
Why avoid probate?• It is a public process • Can exacerbate family situations• Can be costly to administer ($5,000)• Takes time to complete (6-9 months)
![Page 24: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/24.jpg)
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
![Page 25: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/25.jpg)
What are the most common estate plans?
• More comprehensive plan includes a living trust, pour-over wills, and powers of attorney
• Designed for clients who want to avoid probate
![Page 26: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/26.jpg)
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
![Page 27: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/27.jpg)
What does the estate planning process look like?
• Review draft of documents• Attend a signing conference• Change beneficiaries or/and fund your
trust
![Page 28: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/28.jpg)
Questions……
Serving the Holland area since 1900
![Page 29: Alzheimer's Association Presentation](https://reader031.vdocument.in/reader031/viewer/2022020716/554c381ab4c9056b648b458a/html5/thumbnails/29.jpg)
Thank YouP. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
Serving the Holland area since 1900