whats next workshop 2010
TRANSCRIPT
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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) [email protected]
What’s Next Workshop 2010
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Did you know?• You could save approximately $5,000
by having an estate plan prepared for $850
Serving the Holland area since 1900
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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
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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
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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
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Why avoid probate?• It is a public process • Can exacerbate family situations• Can be expensive to administer
(between 3-8%)• Takes time to complete (6-9 months)
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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
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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
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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
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What does the estate planning process look like?
• Review draft of documents• Attend a signing conference• Change beneficiaries or/and fund your
trust
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Questions……
Serving the Holland area since 1900
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Thank YouP. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) [email protected]
Serving the Holland area since 1900