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the website of
Lisa Nachmias Davis
Attorney at Law

• "Look-back" period extended to five years.  (For an explanation, see my page on "What If I Give It All Away?")
• if ANY gift has been made in five years and cannot be PROVEN to be exclusively for reasons other than qualifying for Medicaid, the result will be a period of ineligibility that will start AFTER THE PERSON MAKING THE GIFT NEEDS LONG-TERM CARE and AFTER THE PERSON HAS NO OTHER ASSETS (or if married, his/her spouse is already reduced to the minimal amount the law allows)
• NO ONE who is unmarried can qualify for long-term care benefits (whether in a nursing home at home) with equity in the home over $500,000 (sounds easy, but what if you happen to live in a very expensive area?)
• Note:  these proposals are the similar to those in the so-called "Transfer of Assets" Waiver request that Governor Rell withdrew last summer (2005). 
  

• In 2003, the legislature adopted so-called "transferee liability" rules that were tied to the approval of the Section 1115 waiver (see below).  On June 8, 2005, the legislature made those rules effective IMMEDIATELY, despite the waiver's rescission.  It is not entirely clear if the law applies to gifts since 2003, or only to gifts after 6/8/05
• *Note that gifts made on/after 2/8/06 would now create "transferee liability" for applications within 5 years.
  
• The statute attempts to create a "debt" owed by the giver AND the recipient of any gift given after the date the bill is signed by the Governor, in the amount of the cost of care for the person who made the gift (up to the amount of the gift, not more). 
  
• The State is authorized to use any lawful means to collect the debt.
  

Three questions --

(1) "How can I keep my home and support my lifestyle?"
(2) "How can I pay for what care I may need?" and
(3) "How can I leave something behind for the people and causes I care about?"

-- confront us as we enter old age

What are the answers?

Financial planning with reverse mortgages and home equity loans, annuities and retirement plans, earnings in compliance with Social Security laws, and careful projections in spending principal, to enable an elderly person to remain at home or to choose wisely in selecting an appropriate assisted living facility or other living environment.

Selecting appropriate long-term care insurance and "Medigap" supplemental insurance, and taking advantage of many helpful government programs including Medicare, Medicaid, the Connecticut Home Care Program for Elders, and ConnPACE, to ensure continued care at home as long as possible, or if necessary, in an institutional setting.

Transfers of property, by Will or if appropriate during life, whether to minimize death and income taxes, or to prepare for Title 19 (Medicaid) eligibility if necessary, but keeping your needs and wishes as the guiding principle.

        What kind of planning is involved, and how can a lawyer help?

A typical plan might require a Will and/or living trust agreement, durable powers of attorney, living will and related documents, and designations of conservator in the event of future incapacity. The plan might also require evaluating the effect on Title 19 eligibility of planned gifts to family members, rights under Social Security or Medicare, or might involve real estate transfers.  

  If special care is needed, you may also require advice about eligibility for programs that provide coverage for nursing home care or for significant care at home, or help determining whether or not your resources are sufficient to support residence in an assisted living facility. 

Families with relatives in institutional facilities may require advice on the best way to ensure good care for their loved ones, or advice on enforcing their legal rights.

When planning has not been done, families may need assistance with techniques such as conservatorship if necessary to ensure an older person's well-being.

And after the planning is done (or if it wasn't done) -- families often need help with an application for Medicaid once an individual is in a nursing home or requiring long-term care at home.

It is vital to consult an attorney when a married couple is concerned that loss of income or assets to pay for one spouse's needs, may impact the quality of life of the spouse at home.
It is vital to consult an attorney when anyone over age 55 with less than $300,000-$500,000 intends to make gifts of any significant amount, or when a gift has been made and an application for Medicaid benefits is being filed.

===================Various Notes and Announcements====================

  New requirements for conservators when placing a ward in an institutional setting.   Effective October 1, 2005, conservators must seek Probate Court approval before placing a ward in an institutional setting; if emergency placement is required, conservators must report to the Court after placement is made; and placement may be made ONLY if "necessary." 

TIP:  Interplay of Home Care Program and a Reverse Mortgage.  The Connecticut Home Care Program for Elders can provide much-needed home care services for those with limited resources, unable to pay for care.  Similarly, the Cash Assistance program can even supplement income for those with very little means of support.  HOWEVER, for those who aren't married, the State may place a lien on the home.  The idea is that the lien must be repaid when the individual leaves the home for an eventual permanent stay in a nursing home; or when the individual dies.  The problem is that these programs may not be enough, but the lien may deny the individual access to equity in the house by way of a reverse mortgage.  That is, the mortgage company will require that any liens on the home be paid off out of mortgage proceeds at the time of closing.  While the state lien is not repaid until death/institutionalization, and bears NO interest, the mortgage company lien accrues interest immediately. SOLUTION?  If there is ANY chance that you would want to access your home's equity to provide for care beyond what the Home Care Program will provide, you may wish to secure a reverse mortgage Home Equity Line of Credit BEFORE you apply for benefits.  You do not have to use up the line, but once the mortgage is  in place the state lien won't prevent you from getting the mortgage.  On the other hand, reverse mortgage fees can be very high and the debt begins accruing interest immediately.  Read more in this outline.

Elder Law Answer Book. I am proud to be co-author of the Elder Law Answer Book (2nd edition) (with annual updates) with nationally-recognized author Robert Fleming.  In a straightforward Q&A Format, the Elder Law Answer Book tackles the many different questions that confront those who advise the elderly and their families -- from Medicaid to Veterans Benefits to Wills and Trusts to Retirement Benefits.  While it isn't necessarily intended for the general public, it should be invaluable to planners, accountants, non-specialists, and others who assist the elderly.  You can order this book from Aspen Publishers, Amazon.com, or other booksellers, as well as the annual updates.

Help Understanding Medicaid.  Medicaid is a confusing subject.  This website includes a Powerpoint slide-show on "Medicaid and Long-Term Care in Connecticut" that should get you started in learning about this difficult topic.  THIS SLIDE SHOW IS CURRENT TO MAY 2006 -- it now includes the Deficit Reduction Act changes.  This site also includes 2 articles to explain what assets are "exempt," and what preparations you should make to "spend down" if you or a loved one (in CT) is inevitably likely to be on Medicaid in a short period of time.  You may also want to read about the tricky subject of "transfers of assets" subject to the ALERT above. Please note that if you are married, (1) the law provides you with additional protections, but (2) the State of Connecticut is restricting these protections more every day -- you MUST consult an attorney if you and your spouse have more than $19,020 in exempt assets or if one person could not support him/herself on his/her own income alone.

  How to Spend Down.  When Title 19 (Medicaid) is in the near future (you or a loved one has only enough in remaining assets to pay for a few months of care in a skilled nursing facility or at home), it is important to spend those remaining assets wisely.  Title 19 is a safety net and does not address all your possible needs.  See my checklist for, "Getting Ready for Medicaid," for some ideas about wise and practical ways to use those last dollars to protect yourself.  IF  YOU ARE MARRIED, DO NOT ACT upon these ideas without consulting an attorney!!!

Powers of Attorney:  Many people find it useful to have in force a Durable Power of Attorney giving one or more persons whom you trust, the power to handle your affairs for you if you are unable to do so.  If you have a valid power of attorney, you may avoid the need for the appointment of a court-supervised "conservator" if at some point you become unable to handle your affairs.  On the other hand, the Power of Attorney is a powerful document.  You are right to be cautious about giving another person broad power over your affairs.  Be sure your attorney-in-fact is aware that he or she is required by law to act for your benefit or otherwise as you have directed, and that in Connecticut, the probate court has the power to hold accountable the person named to act for you.  Finally, your Power of Attorney document should reflect your wishes.   Did you know that unless the Power of Attorney expressly authorizes gifts, even charitable gifts you make ever year, the attorney-in-fact has no authority to make gifts of your funds?  And that giving an unlimited power to make gifts to him or herself, can cause tax problems for the attorney-in-fact?  You should discuss your power of attorney with a lawyer.  For more information on powers of attorney in Connecticut, you may want to consult my articles published in www.CTElderLaw.org, a consumer-oriented website that provides legal information of interest to elderly Connecticut residents.  (To go straight to the part on Powers of Attorney as I wrote it, click here; Connecticut Legal Services has added references to the actual laws on this as well as making the Q&A easier to navigate, on this page.)

529 Plans.  Thinking of giving to your grandchildren?  "State-sponsored qualified tuition plans" can offer tax-free savings with significant control retained by the donor.  However, there are pitfalls you should worry about unless you are certain to have sufficient private resources to pay for all your future long-term care needs without recourse to government benefits.  Click here for my article on "Funding College with Section 529 Plan Gifts:  Benefits and Pitfalls."

Planning to Move? You should know that the laws of our 50 states are enormously different when it comes to insurance coverage, Medicaid eligibility, the validity of trusts, and even the meaning of your will.  It is vital that you consult a local attorney after, or even before your move.  Find a local attorney who is a member of the National Academy of Elder Law Attorneys

For a list of CONSUMER LINKS formerly on this page click HERE.

List of Articles Referred to on this Page:

• Slideshow:  Medicaid and Long-Term Care in Connecticut (last updated May 18, 2006)
  

• "What if I give it all away?" Questions and Answers about the Medicaid Transfer Rules in Connecticut see the ALERT above for some important changes)

• Exempt Assets Summary

• Getting Ready to Be on Medicaid in Connecticut:  How Should You "Spend Down"?

• Funding College with Section 529 Plan Gifts:  Benefits and Pitfalls

• Paying for Staying at Home:  Reverse Mortgages
  

• Ten Reverse Mortgage Basics / The Good and Bad of Reverse Mortgages (summary outline)
  

Other places to write or call:   (please give me feedback on this information so I can keep it current)

Connecticut Programs and Information:

Elder Rights/Protective Services.  Investigates potential cases of elder abuse, neglect, abandonment or exploitation of persons 60 and over including monitoring and linkage with community based services.  1-888-385-4225 or 1-860-424-5241; after hours/weekends Infoline 800-203-1234.

Connecticut Home Care Program for Elders.  Offers home and community based services as an alternative to institutional placement.  Program is available to Connecticut residents aged 65 and older who qualify financially and functionally.  1-800-445-5394 or 1-860-424-5181.  For eligibility information, see the "Health Care" page of the CTElderLaw.org website, or go directly to the CT Home Care page.  The Department of Social Services also has information.

CHOICES, help for Connecticut residents in selecting appropriate "Medigap" or Medicare supplemental insurance: 1-800-994-9422, Connecticut's program for Health Insurance Assistance, outreach, information and Referral Counseling and Eligibility Screening" (affiliated with the Area Agencies on Aging.) 

Connecticut Hospice, Inc., 61 Burban Drive, Branford, CT 06405.  Tel:  (203) 481-6231, Fax: (203) 483-9539, email:  cthospc@interserv.com.  Connecticut Hospice provides care for those in the terminal stages of illness. 
 

Information on Reverse Mortgages:

http://www.hud.gov/rvrsmort.html - the government's site on reverse mortgages.

AARP has a comprehensive site on reverse mortgages at http://www.aarp.org/revmort; you can also check with the National Center for Home Equity Conversion (NCHEC) at http://www.reverse.org/

The following documents may be somewhat dated, so check the updates. 

"Money from Home: A Consumer's Guide to Reverse Mortgage Options."  Write to FannieMae, 3900 Wisconsin Avenue NW, Washington, DC 20016-2899. 

"Facts for Consumers -- Reverse Mortgages," published by the Federal Trade  Commission, Office of Consumer/Business Education, Washington, D.C. 20580. 

"Home Made Money,"  published by AARP, lists key questions to ask, offers less costly alternatives to reverse mortgages, and includes information on obtaining reverse mortgage counseling.  The guide can be ordered online or by calling toll free 1-800-424-3410.  You can order online by sending email to RMinfo@aarp.org.  Ask for publication  stock #D12894. Include your name, full postal address, the publication title and stock number. There is also an online version at http://www.aarp.org/revmort, AND you can download -- but it is 2 MB, in Adobe.

"Your New Retirement Nest Egg," by Ken Scholen, available from The National  Center for Home Equity Conversion, 7373 147th Street West, Suite 115, Apple  Valley, MN 55124. 

Help with Medicare and Medigap Insurance

Help with Medicare Issues:  Center for Medicare Advocacy, P.O. Box 350, Willimantic, CT 06226.  1-860-456-7790. Free assistance for Connecticut residents in most cases.  AN INVALUABLE SOURCE OF HELP WITH THAT IMPOSSIBLE MEDICARE PART D PRESCRIPTION BENEFIT. 

Help selecting appropriate "Medigap" or Medicare supplemental insurance AND the appropriate Medicare Part D Prescription Plan:  CHOICES, 1-800-994-9422, Connecticut's program for Health Insurance Assistance, outreach, information and Referral Counseling and Eligibility Screening" (affiliated with the Area Agencies on Aging.)  You can also check the CT Insurance Department site for Medigap policies.

General:

American Association of Retired Persons, Consumer Affairs Division, 601 E  Street, NW, Washington, D.C. 20049, telephone (202) 434-2277.  http://www.aarp.org

National Association on Area Agencies on Aging, 1112 16th Street, NW,  Washington, D.C. 20036, telephone (202) 296-8130 (maintains a nationwide  "Eldercare Locator Number," a toll-free number for information about public  programs for older Americans. Call 1-800-677-1116). 

Brookdale Center on Aging, Hunter College, 425 East 25th Street, New York,  NY 10010. Tel: (212) 481-4426; Fax: (212) 481-5069. Many useful  publications. 

DISCLAIMER:
THIS INFORMATION IS NOT PROVIDED AS  LEGAL ADVICE AND CREATES NO ATTORNEY-CLIENT RELATIONSHIP.  NO ENDORSEMENT IS INTENDED BY ANY REFERENCES HEREIN.  PLEASE CONSULT YOUR OWN LEGAL AND FINANCIAL ADVISORS BEFORE TAKING ANY ACTION.

I can only provide general information, and will not provide advice about a particular case without a formal engagement. Writing to me does not create an attorney-client relationship.

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Lisa Nachmias Davis
Attorney at Law
205 Church Street, Third Floor
New Haven, CT 06510
Phone: 203-776-4400
Fax: 203-774-1060 or 776-4411
davis@sharinglaw.net