PAY A CHILD FOR MY CARE! ARE YOU DAFT?
In our elder-law practice we see that families are struggling to provide care for a parent or parents who are still at home. In many cases they are avoiding cost by providing the care themselves. While it is hard for the children to charge their parents for this care and just as difficult for the parents to turn over a substantial portion of their life savings to the children, it may be a wise family decision for Medicaid planning purposes.
The current Medicaid “look-back” period is five years and there are rumblings that the new administration might change it again to seven years. Family gifts are “penalized” if they occur within the look-back period. The penalty is a denial for Medicaid qualification which program pays for long-term care for the parent. There are no penalties if the transferred assets are part of a contract, or family Care Agreement, providing for specific services to the parents.
There are “pros” and “cons” to such agreements but they should be part of the Medicaid-planning discussion. Other family members are normally involved and at times mediation is useful. Kristy, Hilary and I are ready to assist you with these and many other difficult decisions.
Jeremy Howe
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.
They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law.
Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.
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