San Diego Elder Law Center E-News
Serving the legal needs of San Diego's elder and disabled communities, their families and caregivers
May 2009 - Vol 5, ISSUE 5
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| Greetings! |
Thank
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relevant,interesting and informative. Please give us your feedback on
these articles, and ideas for future articles that would interest you.
You can reach us for comments and other info at www.sandiegoelderlaw.com
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Be Aware of the Dangers of Joint Accounts |
Many
people believe that joint accounts are a good way to avoid probate and
transfer money to loved ones. Such accounts are sometimes referred to
as "the common person's estate plan." But while joint accounts can be
useful in certain circumstances, they can have dire consequences if not
used properly. Adding a loved one to a bank account can affect
Medicaid/Medi-Cal planning as well as expose your account to the loved
one's creditors.
When a person applies for Medicaid/Medi-Cal
long-term care coverage, the state looks at the applicant's assets to
see if the applicant qualifies for assistance. While a joint account
may have two names on it, California will assume the applicant
owns the entire amount in the account. If you claim any sums in
the account were not the applicant's, you must prove the contributions
of the third party.
In addition, if you are a joint owner of a
bank account and you or the other owner transfers assets out of the
account, this can be considered an improper transfer of assets for
Medicaid/Medi-Cal purposes. This means that either one of you could be
ineligible for Medicaid/Medi-Cal for a period of time, depending on the
nature of the transfer.
Another problem with joint accounts is
that the account is vulnerable to all the account owner's creditors.
For example, suppose you add your daughter to your bank account. If she
falls behind on credit card debt and gets sued, the credit card company
can use the money in the joint account to pay off your daughter's debt,
including debts of her spouse. And, if your daughter and son in law are
having marital difficulties, it could also become an issue in their
divorce proceedings.
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| Nursing Home Residents May Keep $250 Stimulus Payment
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Just
about everyone who gets Social Security, Social Security Disability
Insurance (SSDI), Supplemental Security Income (SSI), or a Railroad
Retirement or Veterans Administration disability pension, will receive
a one-time payment from the U.S. government of $250 as part of the
American Recovery and Reinvestment Act of 2009 (aka the stimulus bill).
The extra payment is scheduled to arrive by the end of May the same way
you receive your usual benefit.
Among those receiving the
one-time stimulus payment will be long-term care facility residents on
Medicaid/Medi-Cal who draw Social Security benefits. (But note that SSI
beneficiaries who live in a nursing home and get a monthly SSI benefit
of $30 are not eligible for the payment.)
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Nearly Two-Thirds Face Risky Retirement Due to Long-Term Care Costs
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A
new report by the Center for Retirement Research at Boston College
finds that nearly two-thirds of U.S. households are at risk of being
unable to maintain their standard of living in retirement when possible
long-term care costs are taken into consideration.
The report,
"Long-Term Care Costs and the National Retirement Risk Index," looks at
the percentage of households that would fall significantly short of
their target retirement income if they do what they can to prepare for
the possibility of long-term care costs, on top of health care and
other post-retirement expenses.
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This
publication is intended for general information purposes only. It is
not intended to constitute individual legal advice to any specific
client.
San Diego Elder Law Center: Our knowledge, your peace of mind . . .
Philip P. Lindsley, Certified Elder Law Attorney
San Diego Elder Law Center
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