The Challenge
June’s Challenge
June had spent her lifetime working to build a nest egg for retirement. Knowing the high cost of nursing home care, she wanted to make sure she was set up to be able to afford care should she ever need it.
Our Solution
After consulting with our elder law firm, June learned about two powerful strategies that could help her achieve her goals: the Family Caregiver Arrangement and the Caregiver Child Exception to Medicaid’s transfer rules.
- Family Caregiver Arrangement: June’s daughter, Sarah, had been helping her mother with various tasks around the house for years. We suggested formalizing this arrangement through a Family Caregiver contract. This legally binding agreement would:
- Define Sarah’s caregiving duties
- Establish a fair hourly rate for her services
- Document the care provided
This arrangement allows June to compensate Sarah for her time and effort while also spending down her assets in a Medicaid-compliant manner.
- Caregiver Child Exception: We then explained to June how she could potentially transfer her home to Sarah without triggering Medicaid’s usual five-year lookback period for asset transfers. The caregiver child exception states that a parent can transfer their home to an adult child who has:
- Lived in the home for at least two years prior to the parent’s nursing home admission
- Provided care that allowed the parent to remain at home instead of entering a nursing facility
By combining these strategies, June could:
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- Compensate Sarah for her caregiving services
- Potentially transfer her most valuable asset (her home) without Medicaid penalties
- Ensure she has family support to help her stay at home longer
Our Process
With all of our clients, we follow the HELPS philosophy:
- Humble: We recognize the importance of family caregivers and work to support them.
- Empathetic: We understand June’s concerns about future care needs and asset protection.
- Little Details Matter: We pay attention to the details of Medicaid rules to find beneficial exceptions for our clients.
- Proactive: We’re helping June plan now for potential future care needs.
- Self-development: We stay updated on elder law strategies to provide the best possible advice.
The Outcome
By implementing these strategies, June can feel more secure about her future, knowing she has a plan in place to protect her assets and ensure quality care, whether at home or in a nursing facility if needed.
How We Can Help You
Remember, every situation is unique, and it’s crucial to consult with an experienced elder law attorney to ensure all legal requirements are met and the plan is tailored to your specific circumstances.
