....To put their money in so medicaid does not come and put lien on it as income/asset. I'm being told by an attorney that the POA written 10 yrs ago needs to be redone and it's going to cost me about $1200 for both parents. She claims the verbiage on my POA is outdated and not current for trusts. I saw a section that discussed trusts but not in detail on the current POA. I don't see why I need a new POA or is she just trying to scam me for more $$$. Please anyone out there had this issue with an attorney??? Do I really need to do POAs for my parents again? I have financial and healthcare POAs currently. Also, can an addendum be done and added instead of redoing the whole POA again?
Medicaid has a 5 yr look back period. If it looks like a parent may need it in next five years, a trust done within that time will be null and void. Medicaid cannot put a lean on assets because you have no assets if Medicaid is paying for LTC. States differ, but in my state ur only allowed 2k in the bank. Its called a spend down. All assets are liquidated and used for the persons care until down to the Medicaid allowance of 2k.
I just looked up a Pooled Trust and scanned the info. It seems to be a Special Needs Trust and your parents would not qualify for it. You need to be disabled in some way and under the age of 65.
With my nephew, he was born with physical problems and neurological. Before he could qualify for Social Security Disability, the insurance money he received thru his Moms death had to be put in a Special Needs Trust. This trust has limitations on how as payee, I can spend it on him. Upon his death, it reverts back to Medicaid for the insurance they have provided him and any future care. If any money is left over, that then goes to the beneficiary.
If a house is involved, its sold for the persons care because SS and any pension go to offset the cost of their care. If the house doesn't sell, it either sits there or family pays for upkeep. Then there is the Community spouse and that all changes. They can stay in the house and are not made impoverished. Medicaid only puts a lean on the house at time of death. They recoup if the house sells. Lots of different scenarios. Each case is different.
There have been spouses who have spent everything they have to keep the other spouse in LTC. This doesn't need to happen. If a spouse now needs LTC, Medicaid will allow assets to be split between the spouse receiving care and the spouse remaining in the home. Then the spouse needing care spends down his part and applies for Medicaid when he is to the 2k or under. This leaves the Community spouse with assets and enough to live on.
Before you do something that could keep parents from getting help in the future, you need to talk to a lawyer versed in Medicaid.
I remember reviewing my parent's Will, which was written up by their real estate attorney. Good grief, there were things in the Will that made my hair stand on end. I was so glad when my parent's used the same Elder Law Attorney that I was using to update their Wills, their Power of Attorney, to create their Medical Directives, and create their Revocable Trust.
Yes, Power of Attorney documents can become out-of-date when new State laws are put into place. My parents [90+ yr old] had each other as their Power of Attorney in their old POA, and the new POA had included me as secondary POA. It's always good to have a primary POA and secondary POA in case the primary is unable to carry out what is required.
I see from your profile that your Mom has Alzheimer's/Dementia. Would your Mom still be able to understand a legal document? If hope so, as only she and your Dad are allowed to make any changes to their Power of Attorney.