8 Myths & 10 Common Mistakes for Family Protection Planning

The Myths (Wrong!)

1. It can’t happen to me or my family (wrong!).
2. There’s no way to avoid applicant spenddown (wrong!).
3. There’s no way to avoid spousal spenddown (wrong!).
4. A single applicant can’t protect as much as a married couple (wrong!).
5. There’s no way to protect my home from a lien (wrong!).
6. The best way to protect assets is to give them to children or add a child to title (wrong!).
7. Every Power of Attorney authorizes my spouse or children to take ownership of everything to
   protect from Medi-Cal disqualification (wrong!).

All of the above myths are not true. They are just myths. By accessing the correct rules, laws, and procedures, you can deal with the issues on your own terms. Get the expert help you need, so you don’t lose out. Welfare rules don’t apply.

Your rights and privileges are not automatic. You cannot access them just by filling out a form. You cannot get help from well intended friends or other professionals who are not specifically educated and experienced in this specific subject matter. They will make mistakes that will cost you more to “fix” later. Sometimes mistakes can’t be fixed. Most attorneys do not know these benefits exist, or how to legally claim them, as their professional experience and chosen area of practice lies in other directions.

You must take action before it is too late. Are you thinking that there could be a catastrophe that could wipe you out financially? Are you willing to do something about it before it’s too late? How important is it to you, and what are you ready to do to protect your family. How long have you been thinking about it?  Why haven’t you done something about it?  Ask yourself these questions. Find out the facts.

9 Asset Conservation Planning Mistakes That Can Be Avoided

Mistake #1: Relying on Medicare or health insurance. Neither Medicare nor health insurance pays for the cost of long-term care in a nursing home. With the average cost ranging between $7,000 and $12,000 a month, without a Plan, most families will run through their life savings and lose their home.

Mistake #2: Transferring all assets to children or other relatives. This almost always results in lengthy, unnecessary periods of ineligibility when government long term nursing home care entitlements are applied for. And the tax consequences can be devastating. Often, it’s wiser to do nothing.

Mistake #3: Placing all assets into joint ownership with another family member. This is regarded as though the assets are still owned by the original owner, and can result in lengthy disqualification periods. It does not shelter assets at all. It can also create unfortunate legal problems for families.

Mistake #4: Selling the family home to pay for nursing home care. This is never required, unless you fail to protect it. Yet people still believe they must sell to pay the nursing home.

Mistake #5: Not taking Medi-Cal estate recovery seriously. The government can and does sell your home after your death to recoup benefits paid out on your behalf, unless you protect it.

Mistake #6: Applying for a conservatorship or guardianship. This court-supervised method of dealing with a person’s incapacity is time-consuming, costly, burdensome, and restrictive. It will not help you protect assets from spend-down in order to qualify for government payments.

Mistake #7: Relying on family members to “do the right thing” when critical health care and financial decisions need to be made. In the absence of a Plan to protect assets and other planning documents, this is an awful burden to place on the members of your family.

Mistake #8: Not seeking the advice of a specialist in asset protection planning.  Medi-Cal and other government benefits programs are a highly complex area of the law. Very few attorneys and advisors know and understand the laws and rules that apply to long-term nursing home care Title XIX benefits. If you rely on the advice of others who are well intended, but uneducated or inexperienced in this area, it will cost you.

Mistake #9: Doing nothing. Unless you have no home or assets to protect or you are unconcerned about how decisions will be made in the event of your disability or incapacity, you should take steps now to protect yourself. If you wait until it is too late, it will cost you.

For a no cost/no obligation free eligibility review, call us directly at (949) 888-8229, or simply complete a request for more information. I will review your eligibility options with you, and how much you could expect to receive in nursing home payment benefits.