One of the cities that we proudly serve is Roseville, Michigan, which is in Macomb County. It is a historic place that was originally incorporated all the way back in 1926. The town has a unique charm all its own, and everything that the greater metropolitan area has to offer is within easy reach, so residents enjoy the best of both worlds.
The Importance of Estate Planning
If you are currently going through life without an estate plan, you are not alone. Studies are conducted on an ongoing basis that measure the estate planning preparedness of people in the United States. They consistently find that most adults do not have estate plans in place.
As you may imagine, a small percentage of people that are under the age of 50 have executed last wills or trusts. This being stated, according to a survey that was conducted by Caring.com, almost 20 percent of people that are 72 years of age or older are completely unprepared. Only 58 percent of baby boomers have addressed this very important responsibility.
When you plan your estate, you are acting for the benefit of the people that you love. You never know what the future holds, and people of all ages pass away each and every day. Estate planning is an absolute must for all responsible adults, so you should take action sooner rather than later if you are among the unprepared.
Roseville, Michigan Elder Law Concerns
When the last census was conducted, over 13 percent of people in Roseville were 65 years of age and older. When you enter this age group, you should definitely consider a very important elder law matter that is overlooked by many people.
According to the United States Department of Health and Human Services, approximately 70 percent of Americans that have attained senior citizen status will eventually need help with their activities of daily living. Some of them will be able to stay home and get the help that they need from relatives and friends, at least for a while. However, eventually, a very significant percentage of senior citizens will reside in nursing homes.
If you work and pay FICA or self-employment taxes for at least 10 years, you will qualify for Medicare when you reach the age of 65. This will provide a solid health insurance underpinning, but there are out-of-pocket expenses that you have to pay yourself. These would include deductibles, co-payments, coinsurance, and premiums.
It is important to budget for these expenses in advance, and for most people that retire with a reasonable store resources, they are manageable. This being stated, there is a very big gap in the coverage that is anything but manageable for most families. The Medicare program does not pay for long-term care, and as we have stated, most seniors will need it eventually.
At the time of this writing, the average cost for a year a nursing home in the Roseville area is right around $100,000. There are those that spend multiple years in nursing homes, and married couples could be looking at two rounds of nursing home expenses.
Fortunately, there is a solution in the form of the Medicaid program. Medicaid will pay for long-term care, but it takes careful planning to obtain eligibility. This is because of the fact that there are low income and asset limits, since Medicaid is only available to people that can demonstrate a significant level of financial need.
The five-your look back period is another part of the equation. You can give away assets to get them out of your own name so you can qualify for Medicaid to pay for long-term care. However, all of the gift giving must be completed at least five years before you apply for coverage.
If you do give away assets within 60 months of the date of your application submission, you will be deemed ineligible, and you will have to wait out a penalty period. The length of the penalty would be determined by comparing the amount of the divestitures to the cost of nursing home care in Michigan.
For example, let’s assume that the average cost for a year in a nursing home is $100,000. You gave away $200,000 two years before you submitted your application for Medicaid coverage. Under these circumstances, your eligibility would be delayed by two years. Because of this look back period, it takes careful planning to obtain Medicaid eligibility at the right time.
Schedule a Consultation!
We are here to help if you are seeking estate planning assistance as a resident of Roseville, Michigan. You can send us a message to request a consultation, and we can be reached by phone at 586-493-7661.