At Rothkoff Law Group, we specialize in elder care law, providing families with guidance on legal protections and public benefits. A recent case highlights the importance of Medicaid planning for caregivers. This case involved a widowed mother who had suffered a stroke and her daughter, who had cared for her for years. As the mother’s health worsened, she required nursing home care, leaving the family with the challenge of covering costs while protecting their assets. Here’s how our team’s Medicaid planning expertise helped safeguard their future.

The Situation: A Case for Medicaid Planning for Caregivers

Our client, a widowed mother in her late 70s, suffered a stroke that left her with severe health issues. She had been living with her daughter, who provided care for years. However, her increasing medical needs made it clear she required skilled nursing care.

At the time, her total assets included $90,000—$20,000 in cash, $70,000 in an IRA, and a $315,000 home. The daughter was concerned about affording nursing home costs and whether she would be liable for her mother’s expenses, especially since the home was in her mother’s name but was her own primary residence. This situation demonstrated the need for Medicaid planning for caregivers to address these challenges.

Step 1: Legal Planning and Asset Protection

Our first step was to ensure that the mother’s legal documents were in place:

  • Wills: To ensure her wishes were respected after her passing.
  • Powers of Attorney: To give the daughter legal authority to manage her mother’s finances and healthcare.

These essential steps laid the groundwork for effective decision-making and protected both the mother and daughter legally.

Step 2: Identifying Suitable Nursing Homes

We guided the family through the process of finding the right nursing home by:

  • Researching facilities that matched the mother’s care needs and location preferences.
  • Arranging tours and evaluating the facilities.
  • Providing ongoing care coordination and attending care conferences to monitor her progress.

Step 3: Protecting Against Filial Liability

We reviewed the nursing home’s admissions agreement to safeguard the daughter from potential filial liability. This legal concern can sometimes make children financially responsible for their parents’ care costs. Addressing this upfront ensured the daughter was legally protected.

Step 4: Medicaid Planning for Caregivers and the Caregiver Child Transfer Exception

To cover the nursing home costs without depleting mom’s assets, we developed a strategy to transfer ownership of the family home to the daughter. Using the caregiver child transfer exception, we successfully transferred the $315,000 home without triggering a Medicaid penalty, ensuring mom remained eligible for Medicaid.

Step 5: Medicaid Application and Coordination

Our team assisted with the Medicaid application process by:

  • Collaborating with the nursing home and Department of Human Services to ensure accurate documentation.
  • Managing the mother’s financial assets, including $20,000 in cash, $70,000 in her IRA, and her home, to maximize Medicaid eligibility while protecting her resources.

The Outcome: Success Through Medicaid Planning for Caregivers

After several months, the Medicaid application was approved, covering mom’s nursing home costs. The home transfer was completed without penalties, and the family’s assets were protected. This comprehensive approach ensured mom received the care she needed, while safeguarding her daughter’s financial security.

Conclusion

This case underscores the importance of a coordinated, multidisciplinary approach to elder law and Medicaid planning for caregivers. Our team of attorneys, elder care coordinators, and public benefits specialists worked together to create a plan that protected both the mother’s assets and her daughter’s future. If you’re facing similar challenges, contact Rothkoff Law Group today to learn how we can help you navigate elder law complexities and secure your family’s future.