Legal Question in Elder Law in Michigan

Re: durable power of attorney

As one of the few elder law attorneys who devote most if not all of their practice to elder law, I know it is safe to say that unless the Durable Power of Attorney is an Elder Law DPOA then it will probably preclude you in protecting your loved ones assets.

An elder law DPOA MUST!!! include specific gifting language, usually needs to be immediate effective and effective upon ones disability.

Here is a cut and paste of an blurb about gifting from our web site www.thecenterforelderlaw.com. go there and look around I am sure it will be very educational.

Myth: "My power-of-attorney automatically has the power to take property out of my name, if I ever need Medicaid."

I am in troy not very far from where you are southfield. I am prepared to offer you a complimentary consultation. You can call me if you wish at 249-641-7070.

The Truth: Your best tool to be able to plan for Medicaid eligibility, should you ever need it, is to sign a general, durable power of attorney that includes a "gifting" power. Your agent under the power of attorney will only be able to re-title your assets if your power of attorney contains a "power to make gifts." Most powers of attorney don't contain this, so you might want to ask your attorney to add it. The court procedures to transfer assets without a "gifting power" can be expensive and time-consuming, and may not allow the type of asset protection that many people would like to accomplish.

Without a "gifting power" your agent is generally limited to spending your money on your bills and selling your assets to generate cash, to pay your bills. A "gifting power" is recommended for people who want to become eligible for Medicaid and not be limited to the "non-countable" assets allowed under that program. Some powers of attorney contain this "gifting" provision, but it's limited to $10,000 or $11,000 per year. This figure is too limited to do effective Medicaid planning, and is related to a completely different type of legal issue. (See #11 below, about the federal estate tax.)

One more word about the "gifting power." You should require your agent under your power of attorney to consult with an attorney experienced in Medicaid law before making any asset transfers.

It is not true that one must make all transfers 3 years in advance, the truth is far from this belief.

It is critical your parents plan correctly the first time, this is not a dress rehearsal.

I am in Troy not very far from where you are in Southfield. If you wish I am prepared to offer you a FREE consultation. If interested call me at 248-641-7070

Don Rosenberg.