Showing posts with label Long-term-care. Show all posts
Showing posts with label Long-term-care. Show all posts

Monday, January 10, 2011

Alternatives to Nursing Homes as Nursing Home Populations Swell With Younger Patients - Part 2

 

One of the main reasons cited for this movement of younger people into nursing homes are the budget cuts most states face in Medicare and Medicaid.  In the long term, it is more cost efficient to care for a younger person in their home with part time caretakers.  However, in the short term, this is a more expensive way of treating patients, as the caregivers need to be hired and trained.  In the budget crunch most states are experiencing, short term funding takes priority over long term spending.   Younger people are being moved into nursing homes earlier, as in the short term, this is a more economically viable way of treating them.

According to a study by the AARP Public Policy Institute, the cost of at home care is about a third the cost of providing care in a nursing home or institution.  Many states, however, simply do not have the funding for at home care in their Medicaid programs.

One of the most telling quotes about the movement of younger people to nursing homes is:

“Over the past 20 years, federal laws and policies have established a civil right to get long-term care at home. But NPR's investigation found that is only sporadically enforced.

More than 60 percent of what states spend on long-term care for the elderly and disabled goes to pay for people — like Michelle Fridley — to live in a nursing home. The amount spent on home-based care has grown steadily, but not nearly enough to meet the need. Nationwide, there are some 400,000 people on state waiting lists for home-based care, double the number 10 years ago.”

Frequently attorney’s like our firm, that specialize in caring for the elderly, and those that have long term care needs, must be engaged to support a patient’s right to at home care.  In 1999, the right to at home care was clearly established in the Supreme Court, in the “Olmstead Case”.   In that decision, the Supreme Court stated that the unnecessary institutionalization of people with disabilities is  a form of discrimination.

 

To be continued…

Wednesday, December 16, 2009

Facing the Realties of Long-Term Care

Cohen & Oalican, LLP; Medicaid, MassHealth and Elderlaw Attorneys in Boston, Andover, Raynham.

On Thursday, October 23, 2008, the New York Times included a Special Section entitled "Retirement" containing a number of interesting and informative articles. Given the present financial crisis and the resulting uncertainties we face, it is more important than ever to be well informed about financial and legal issues which may impact our families and to do some medicaid planning. We encourage you to read these articles as well as other articles which impact seniors at the New York Times website.
"Young Workers Must Face Realties of Long-Term Care" focuses on the the need for baby boomers, many of whom are caring for elderly parents, to consider their own potential need for long-term care in the future. Faced with the rising costs of nursing home residence and the present economic crisis, this article answers basic questions concerning long-term-care insurance: when to buy coverage, where to buy coverage, how much coverage is needed, etc. The full article can be accessed at the following link: Article.


This series, brought to you by Boston Attorneys Cohen & Oalican, LLP, specializing in Guardianship and Conservatorship Attorneys in Boston. Posted by Elder Law Boston Lawyer

Wednesday, September 9, 2009

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Saturday, July 25, 2009

Tax consequences of an Irrevocable Trust

An irrevocable trust is written so that if your home or other appreciated assets are sold after your death, your heirs will receive what is called a “step-up” in the tax basis. This means that the ultimate beneficiaries of the irrevocable trust will pay little or no capital gains taxes if they decide to sell property after your death. If your primary residence is owned by an irrevocable trust and it is sold while you are alive, you will be able to utilize your $250,000, or $500,000 in the case of couples, capital gains exclusion.

An irrevocable trust property will be included in your taxable estate. A Massachusetts estate tax will only be owed upon the surviving spouse’s death if your total estate (including the irrevocable trust's assets) exceed $1 million.

If you have only placed real estate into your irrevocable trust, you can continue to file your annual income taxes as you have in the past. Accordingly, you will not need a new tax identification number for the irrevocable trust. Further, you will still be able to claim any deductions related to your home on your taxes.

If you have placed liquid assets into your trust, you will need to apply for a new tax identification number (EIN) and file an annual trust tax return. An irrevocable trust is drafted so that all the income earned on the irrevocable trust's assets will be taxable to you. You should contact your accountant who will need to complete the necessary tax forms for the irrevocable trust.

Pulbished by Cohen & Oalican, LLC Special Needs Trusts Attorneys in Boston