New Medical Rules Present Serious Challenges For Seniors

The Deficit Reduction Act was Second, the penalty amount of the asset transfer to $750,000, but Florida has yet to
signed into law Feb. 8 with lots of fan- period for such transfers by $3300 (the average make a decision about this.
fare—but the law has few fans among now starts on the date one monthly cost of a Florida If you want to protect your hard-
middle class seniors. Because of the applies for benefits, not nursing home, and an unre- earned assets from nursing home costs
draconian cuts in Medicaid benefits on the date the gift is alistically low figure). Thus, and pass as much as possible to your
for long-term care, seniors are going made, thereby creating Mr. Doe will not be eligible spouse and kids, techniques still ex-
to find it harder than ever to protect even more financial per- to receive benefits for 10 ist that can help you. However, it is
their nest eggs from the ravages of il for families. The fol- months ($33,000 divided by now far more difficult and more com-
nursing home costs. While it may take lowing example illus- $3300), or not until January plicated to do so, and planning must
months for Florida to figure out just trates: Let’s say in March 2008. With no way to pay begin much sooner. In Florida, the
how to implement the federal law, cer- 2006, John Doe gives his the nursing home, the bur- only attorney considered expert in this
tain key provisions are already in ef- son $33,000 to help him Joseph S. Karp, den is going to fall on Mr. painstaking and highly technical area
fect. Those provisions may dramati- purchase a home. In C.E.L.A. Doe’s family members, who is a certified elder law attorney. So
cally affect you and your family. March 2007, Mr. Doe suffers a severe are going to have to come up a way don’t delay—see a certified elder law
First, for all transfers made after stroke and enters a nursing home; with to deal with this financial dilemma. attorney for up-to-date advice.
Feb. 8, 2006, the lookback period is no more assets to his name at that time, Third, the applicant’s home is no Joseph S. Karp is a nationally certified
increased to five he applies for Medicaid. longer considered an exempt asset for and Florida Bar-certified elder law attorney
years. Thus, any as- ...for all transfers made Because Mr. Doe trans- the purpose of Medicaid eligibility. (C.E.L.A.) specializing in the practice of Trusts,
set transfer made after Feb. 8, 2006, the ferred assets within the Only $500,000 in equity is exempt; Estates and Elder Law. His offices are locat-
ed at 2500 Quantum Lakes Drive, Boynton
within five years lookback period is in- lookback period, he is any excess equity counts as an asset Beach; 2875 PGA Blvd., Palm Beach Gar-
prior to the date an creased to five years. ineligible to receive ben- from the point of view of asset spend- dens; and 1100 SW St. Lucie W. Blvd., Port
individual applies efits for a penalty peri- down. An exception is made if the St. Lucie. Call him at 561-752-4550 (Boyn-
for Medicaid, will disqualify the ap- od that begins running the date of ap- spouse, or a child who is under 21 or ton); 561-625-1100 (Palm Beach Gardens);
or 772-343-8411 (Port St. Lucie). Toll-free
plicant from receiving benefits for a plication. In Florida, the penalty pe- disabled, lives in the home. States have from anywhere: 800-893-9911. E-mail: KLF@
certain penalty period. riod is determined by dividing the the option of raising the exemption Karplaw.com. or website www.karplaw.com