Legal Question in Wills and Trusts in Michigan
My father in law may need to go into a nursing home due to declining health. If his wife sells the house and farm to buy a smaller home near the nursing home, will the nursing home take the money from the sale? I've heard the nursing home will want all assets??
1 Answer from Attorneys
If this does not convince you to call nothing will. You need an experience elder law attorney and distance is usually not an issue. We have clients all over the state. Here is a our web site thecenterforelderlaw.com. Our contact information is on the website.
Good luck.
Let me assure you the laws allow a spouse ( your father ) special protection and FRANKLY, WHILE THIS MAY SOUND TOO GOOD TO BE TRUE, WE CAN PROTECT ALL OF A MARRIED COUPLE'S ASSETS. I know your father is thinking he is going to lose everything, however, that is not the case. We will do everything in our power to help you through this, including a lot of hand holding. I want to provide a little background on who I am, a checklist of information you may want to start on and a short primer on the law including the concept of a lady bird deed. I hope that I have not provided you too much information.
Not to brag but here is a little bit about myself. I know you are talking to the right person: My practice is limited to specializing in issues concerning disability, estate, long term care, nursing home, Medicaid and special needs planning. I am the Chairman of the Board of Directors of the Alzheimer�s Association - Greater Michigan Chapter and member of the Association's executive committee; Member of National Academy of Elder Law Attorneys and have been listed since 1991 in the Academy's Experience Registry. Also I am the immediate past Chair of the Governing Council of the Elder Law and Disability Rights Section of the State Bar of Michigan. I am also a Charter Member of the Academy of Special Needs Planners and Member of the Financial and Estate Planning Council of Metropolitan Detroit. I have been selected in years 2009, 2010 and 2011 as a "Superlawyer" which designates that I am in the top 5% of lawyers in the country in my field. I am also an accredited attorney with the US Department of Veterans. In 2010 I was selected by Hour Detroit Magazine as 5 Star Wealth Manager in the area of estate planning and was recently selected again for 2011. Finally, I have been rated by AVVO (www.avvo.com) as Superb (10 out of 10). Avvo is a company that independently rates attorneys throughout the country.
1. Plan for the unthinkable, if your father were to go first, the assets should by pass your mother and legally go to the children or a special trust and morally be used for your mother's care. The children or child could if necessary establish a trust to provide for your mother and protect the assets from the children�s potential problems, including health and creditors.
2. Your father will be able to keep his home provided the equity value of the home and all adjacent land (fair value usually determined state equalized x 2) is no more than $500,000. We would need to remove your mother 's name from the title to the home so that your father is the only one on the title. If the home/property is in a trust then the home will have to be removed from it. The law states that if a home in a trust it is a countable asset. At some point we will need to do a lady bird to avoid probate and potential estate recovery. See explanation of lady bird deed attached.
3. Your father as the community spouse would be able to keep 50% of the countable assets up to about $109,560 of the value of the assets at the time your father first received 30 days of continuous care, which is the earlier of a hospital or rehab stay. THE SNAPSHOT DATE.
4. With respect to the assets above the protected amount we would then at the time only (application for Medicaid) we would transfer them to a special sole benefit trust for your father's benefit. I
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