Surviving Spouse May Be Liable for Elder Care Expenses

Mass. Court Rules Wife Is Responsible For Husband's Nursing Home Care

Spouses need to be very careful or they could end up legally responsible for the cost of their husband’s of wife's nursing home care, as a recent Massachusetts court decision demonstrates.

When Milfranciu Jode entered a nursing home, his wife applied for Medicaid on his behalf.  Mr. Jode was rejected three times due to the failure to provide backup documentation, and he died leaving the nursing home unpaid.

After Mr. Jode's death, the nursing home sued Mrs. Jode, arguing that she was legally responsible for the cost of her husband's care under something called the "doctrine of necessaries." This means that a spouse is responsible for debts incurred by the other spouse for "necessaries." The law doesn't define what constitutes a "necessary," but in the Jode case the Massachusetts Superior Court ruled that the definition of necessaries included the care provided by the nursing home.  Emerson Village, LLC. v. Jode (Mass. Sup. Ct., Middlesex, No. 12-CV-1736-F, Dec. 15, 2012)

Many other states have similar laws to the one in Massachusetts making one spouse responsible for the care of the other spouse. If your spouse is in a nursing home, contact your elder law attorney right away to find out the best course of action to prevent any surprises when it comes to the bill.


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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.

Insurance and Medical Bill Advocacy

Insurance and Medical Bill Advocacy

I received this article as part of a monthly newsletter this week, and I thought it could be useful to our clients and friends. The contact person is Robin at Robin G Smith Consulting. Call her at 888-363-3914 or go to her website at is www.robingsmith.com for more information, or call us!

As 2012 begins, many people will find themselves with new health benefits and higher deductibles, or, increasingly, with no health insurance at all, particularly in the 50—64 year old age category. Additionally, the latest focus of healthcare reform has become prevention, or wellness, vs “sickness” care. Companies are struggling to find solutions to health cost inflation, and new paradigms are emerging that feature “worksite” clinics, and direct, af?fordable pre-paid primary care (another story here). I offer one such program, Medical Membership Plans (MMP).

A MMP is a prepaid primary care plan for companies and individuals ($84/month individual, $99/family), where care is delivered by a national network of urgent care centers. There are no copays, no deductibles, no pre-existing conditions, and care generally includes all services that can be delivered at the urgent care center (x-rays, injections, labs, etc.) This plan is open to all, and is a membership plan, not health insurance. Many clinics are available, al?though, geographically, some areas are better covered than others— e.g. Worcester and Boston area, MA, great, Cape Cod, not so good. RI has many clinics available, and CT has good coverage in the urban areas. Call me (Robin) for more information, or a list of participating providers in your area. The MMP model may help drive down health costs.

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The Law Offices of Jeremy W. Howe, LTD. are Elder Law Attorneys in Newport, 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

TAX DEDUCTION FOR FAMILY CAREGIVER SERVICES

TAX DEDUCTION FOR FAMILY CAREGIVER SERVICES

The following Article was written by: Kim Boyer, CELA, BOYER LAW GROUP, www.elderlawnv.com and provided to our office via the Veterans Advocates Group of America monthly e-newsletter called VAGA News.
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Many times family members or friends provide care to a loved one for a fee. These family members or friends are typically unlicensed caregivers. Can the person paying for the care deduct the payments as a medical expense on their income tax return?

Medical expenses, not compensated for by insurance or otherwise, may be allowed as a deduction to the extent that the expenses exceed 7.5% of the taxpayer's adjusted gross income. Medical care can include amounts paid for "qualified long-term care services" as defined herein. The taxpayer must be certified as "chronically ill" by a licensed health care professional. The services must be provided pursuant to a plan of care prescribed by a licensed health care professional.

The U.S. Tax Court recently ruled on the issue of whether payments to unlicensed care providers were deductible. Estate of Lillian Baral v. Commissioner of Internal Revenue (July 5, 2011).

The tax court examined whether payments totaling $49,580 made by Lillian to Ms. Pzevorski and Ms. Jakubowski were deductible. Neither of them were licensed healthcare providers. Thus, the payments were not deductible as medical expenses. However, the court found that payments to them could be deducted if their services qualified as "long-term care services" as defined under the tax code.

After analyzing the tax code, the Court found that the care provided constituted "maintenance or personal care services" for a "chronically ill individual" provided pursuant to a "plan of care prescribed by a licensed health care professional." Thus, Lillian could deduct $43,273 of the payments made to the care providers (the amount paid which exceeded 7.5% of her adjusted gross income).

For Medicaid purposes the payments will be considered gratuitous when provided by a family member, unless there is a written contract. It is advisable that there be a written contract providing for reasonable compensation and specifying the nature of services to be provided.

**This article/newsletter is not intended as a substitute for VA, legal, or other professional advice. Every effort has been made to make the content of this newsletter accurate; however, neither VAGA, nor any of its founders, assume any responsibility for errors in content or damages that may occur as the result of using the information contained within this newsletter or from any associated website or e-mail links.
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The Law Offices of Jeremy W. Howe, LTD. are Elder Law Attorneys in Newport, 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