Insights As Elder Law Attorneys Meet in Texas
A few weeks ago, I made my annual trek to the town of Grapevine near Dallas-Fort Worth, Texas to the Embassy Suites Outdoor World Hotel where experienced elder law attorneys come to meet to discuss issues affecting their practices and their clients. Sponsored by the National Academy of Elder Law Attorneys (NAELA), the “Unprogram” as it is called is the once every year chance to learn what other attorneys are doing in all areas of the United States. For about 14 years now every year in January I have had the opportunity to discover information such as that New Jersey has Medicaid expanded estate recovery (meaning it may be dangerous for some of my Pennsylvania clients to move to New Jersey to receive long term care) or that Florida may be a relatively easy state to receive benefits but you have to monitor the quality of nursing home care.
If my clients were to decide to move or commute or if I speak to adult children who live in say California or New York or Georgia who want to move their parents here to be with another adult child or clients from here who want to relocate there, I want to be able to discuss with them intelligently what are the positives and negatives of making the change recognizing the different laws and conditions in other states.
It was at an “Unprogram” some years back where I learned of the advantages under the 2005-2006 Medicaid laws that are still in effect of using Deficit Reduction Act (DRA) Compliant Immediate Annuities for Medicaid planning, a strategy that is now used throughout much of the country including Pennsylvania and does not involve transferring funds from independent parents to children five years before parents might need care.
The “Unprogram” is great, too, from the perspective of contacts and friends made in other states. It is comforting to be able to lift the receiver of my office phone (or punch in the contact on my smart phone) and know I can talk to lawyers in other states who I know and trust to give informed opinions how to deal with Medicaid or assisted living or home health care benefits in their state or to discuss with me the quality of care in their own jurisdictions.
This year did not disappoint.
Every year I introduce and lead a discussion on “Family Agreements,” the written agreements that families can enter into that allow adult children to be paid for providing services for their parents without Medicaid penalties later or that allow parents to pay for renovations to their adult child’s home to build an “in-law” suite without it being considered a gift by Medicaid and requiring penalties later on. Most families I represent try to keep their parents home as long as possible but the strategies they use to accomplish this could backfire if their parent needs more care later than they can possibly give. Family Agreements can deal with this.
Family Agreements have become a favorite topic of mine because they become a blank slate on which families can write their own plans for care based on their own needs, circumstances, and desires. They allow blended parent-child families to buy properties together with a plan without being concerned about later repercussions. They permit adult children to “buy-in” to a parent’s property and take out home equity loans in a proper amount that allow needed repairs and improvements.
This year I suggested we take the discussion a step further to deal with “Advanced Family Agreements – Using Private Reverse Mortgages, Joint Titling (in the right case) and Real Estate with Personal Services Contracts To Develop a Plan.” I am proud to report that the subject resulted in standing room only.
It raised other issues, too, including the availability in some states for children to receive compensation from the government for providing care. This may increase in coming years.
Under VA Aid and Attendance, the agent under the power of attorney might need to be a different person than the caregiver.
We discussed differences between reimbursement, compensation and gift in dealing with federal or state income taxes for a caregiver. For most purposes, reimbursement is the desired category both for income tax and Medicaid purposes.
Refreshed with new ideas, information and friends, I headed home to Chester County to implement new plans.
For more, listen to “50+ Planning Ahead” a weekly radio program on WCHE 1520 on every Wednesday from 4:30 pm to 5:00 pm with Janet Colliton, Colliton Law Assocs., PC, and Phil McFadden of Home Instead Senior Care.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.