Medicaid Planning & "Miller Trusts" (Qualified Income Trust)
As of 2017, the average cost of a nursing home facility in New Jersey was approximately $10,000 per month! Thinks about that - - that's well over $100,000 a year. And the cost is only going up, as more and more baby boomers begin to retire and need long term care. Who pays for that?
Unfortunately, unless you have a good long-term care insurance policy (LTCI), the short answer is: you do. True, Medicaid may eventually pay, but only after you have spent down virtually all of your assets. If you are married, your spouse who does not require nursing home level of care is able to keep some of your marital assets, but the amount is modest relative to what your spouse may need in order to maintain the same standard of living long term. What to do?
The answer is: PLAN. If you want to minimize the amount you will have to pay from your private funds on a nursing home, you need to plan well in advance. Medicaid has a look-back rule that goes back five-years (as of 2018) which means any transfers within that period of time will be scrutinized. There are other transfer rules and exceptions that apply as well, so you should consult with a knowledgeable attorney as soon as possible.
Planning for the possibility of you or your spouse needing long term care is complex and involves many factors, but we can help make sense of it all. Feel free to contact us if you wish to discuss long-term care planning or if you need assistance in filing a Medicaid application. We can help you navigate that process.
Try Our Smart Law Platform
If you have a need for basic legal services like wills, or a Special Needs Trust or guardianship for a child turning 18, we now offer these services at an affordable price via our Smart Law platform. Here is the pricing:
1. Estate Planning:
- Last Will and Testament: Single Person - $295 / Married Couple - $395
- Power of Attorney: Single Person - $195 / Married Couple - $295
- Living Will (Advance Medical Directive): Single Person - $195 / Married Couple - $295
- Complete Estate Plan (all 3 documents): Single Person - $395 / Married Couple - $495
2. Miller Trust (sometimes called a Qualified Income Trust) - part of Medicaid applications: $550 (starting at)
3. Special Needs Trust or Supplemental Benefits Trust: $850 (starting at)
4. Guardianship (for a person turning 18 or an older adult)
- Limited Representation: $750 (limited to preparing necessary court documents and letters- please call our office for details
- Full Representation: $2,500 (if uncontested; if contested, fee will be converted to hourly)
How Smart Law Works
The process is very simple. Just click onto our "Smart Law" seal below and follow the instructions on that page. You will be asked to fill out a simple contact form requesting basic information. There will also be a drop-down menu from which you can select the type of service you need. Once we receive your request, we will send you via e-mail the necessary link to begin the process.
It's simple, fast and will save you a ton of money!