whats next workshop

MEDICAID AND ESTATE PLANNING: HOW TO DEVELOP A PEACE OF MIND

P. Haans Mulder, JD, MST, CFP®Cunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) 392-1821phmulder@holland-law.com

What’s Next? Workshop

Background• Partner at Cunningham Dalman, P.C.• Masters in Tax, CFP®, and specialize in

estates/elder law and business planning• Cunningham Dalman, P.C. has been serving

the greater Holland/Zeeland since 1900

Serving the Holland area since 1900

Overview• Medicaid process and eligibility rules• Example of how Medicaid planning works• Parts of an estate plan and process• Most common types of estate plans

Serving the Holland area since 1900

Did you know?• 40% of people 65 years and older will

stay in a nursing home• Average cost to stay in a local nursing

home is $6-7,000/month

Serving the Holland area since 1900

What is Medicaid?• State and federal program that pays

for medical treatment (including nursing home care)

• Oftentimes confused with Medicare

Serving the Holland area since 1900

When does Medicaid apply?• Must be in a nursing home• Applies to people who are 65 years or

older, blind, or disabled• Must pass the income and asset tests

Serving the Holland area since 1900

Who does Medicaid apply to?

• You cannot have enough income to pay the monthly cost of staying in a nursing home ($6-7,000 in this area)

Serving the Holland area since 1900

Who does Medicaid apply to?

• A single person cannot have more than $2,000 in countable assets

• Can keep your home (it’s not in your trust) and a vehicle

• All other assets are countable

Serving the Holland area since 1900

Who does Medicaid apply to?

• Asset test allows a married couple to keep their home (again, if it’s not in a trust), a vehicle, and one-half of their other assets

Serving the Holland area since 1900

Example• Clients were husband and wife• Wife had to go to a nursing home• Didn’t stay in a hospital for three days

so Medicare didn’t cover stay• Had house, vehicle, and investments

Serving the Holland area since 1900

Example• Could keep the house (because it was

properly owned) and their vehicle• Without any Medicaid planning, they

would have had to spend down one-half of their investments

Serving the Holland area since 1900

Example• Drafted a trust that allowed them to

protect all of their investments (as opposed to just half)

• This provided peace of mind to the husband

Serving the Holland area since 1900

Did you know?• You could save approximately $5,000

by having an estate plan prepared for $850

Serving the Holland area since 1900

What is estate planning?• Process of planning for the future

management and distribution of your assets and your future medical care

• Includes documents such as wills, trusts, and powers of attorney

Why is it important?• Reduces the cost of administration• Minimizes stress for family and friends• Determines who will receive your assets• Authorizes who will make your medical

decisions

What is probate?• Probate is a court process to administer

a deceased person’s financial affairs• Required when someone passes away

with assets in his or her own name or fails to name a beneficiary

Why avoid probate?• It is a public process • Can exacerbate family situations• Can be to administer (between 3-8%)• Takes time to complete (6-9 months)

What are the most common estate plans?

• Basic plan includes wills (potentially with a trust) and powers of attorney

• For clients who do not have a house or are not concerned with avoiding probate

What are the most common estate plans?

• Other plan includes a living trust, pour-over wills, and powers of attorney

• Plan is designed for clients with grown children and who desire to avoid probate

What does the estate planning process look like?• Complete estate planning questionnaire• Attend a meeting that we discuss your

goals and the types of estate plans

What does the estate planning process look like?

• Review draft of documents• Attend a signing conference• Change beneficiaries or/and fund your

trust

Questions……

Serving the Holland area since 1900

Thank YouP. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) 392-1821phmulder@holland-law.comwww.holland-law.com

Serving the Holland area since 1900