Changes to Medicaid rules, estate planning regulations, and elder care programs require families to stay current with developments that can affect planning decisions made years in advance. Mandelbaum Barrett PC’s elder law practice issues periodic alerts to keep clients and advisors informed about relevant developments in the law affecting older adults and their families in New Jersey.
Mandelbaum Barrett PC’s February 2019 Elder Law Alert addresses elder law issues relevant to New Jersey residents and their families. The firm’s elder law and estate planning attorneys provide ongoing guidance to clients navigating the intersection of aging, long-term care, government benefits, and estate planning. The firm’s trusts and estates practice includes comprehensive elder law planning for individuals and families throughout New Jersey.
Medicaid and Long-Term Care Planning in New Jersey
Medicaid remains the primary funding source for long-term nursing home care for most older Americans. For individuals who do not have long-term care insurance or sufficient personal assets to self-fund care, Medicaid planning is a critical component of elder law counseling. The rules governing Medicaid eligibility — including the five-year look-back period, the treatment of exempt and non-exempt assets, the spousal impoverishment protections, and the availability of community Medicaid for home and community-based care — are complex and depend on individual circumstances.
The Medicaid look-back period subjects asset transfers made in the five years preceding a Medicaid application to scrutiny. Transfers made without adequate consideration during this period can result in periods of ineligibility for Medicaid benefits. Understanding the rules around the look-back period, exempt transfers, and the treatment of the family home is essential for families engaged in Medicaid planning.
Protecting Assets for Older Adults and Their Spouses
New Jersey Medicaid rules include spousal impoverishment protections that allow a community spouse — the spouse who remains at home while the other receives nursing facility care — to retain a certain amount of assets and income. The community spouse resource allowance and the minimum monthly maintenance needs allowance are designed to prevent the community spouse from being impoverished by the other spouse’s care costs. Planning around these rules can help families preserve more of their assets while ensuring the institutionalized spouse qualifies for Medicaid coverage.
According to the New Jersey Division of Medical Assistance and Health Services, New Jersey’s Medicaid program provides coverage for a range of long-term services and supports for eligible individuals, and the eligibility rules and asset treatment policies are subject to periodic updates that can affect planning strategies available to families.
Advance Directives and Powers of Attorney in Elder Law Planning
A complete elder law plan includes documents that address incapacity and end-of-life decision-making. A durable power of attorney designates an agent to manage financial and legal affairs if the principal becomes unable to do so. An advance directive documents the individual’s health care wishes and designates a health care proxy to make medical decisions when the individual cannot. Having these documents in place, properly executed, reduces family conflict and ensures that an individual’s wishes are legally enforceable when they matter most.
Contact Mandelbaum Barrett PC for Elder Law Guidance
If you have questions about Medicaid planning, long-term care, estate planning, or other elder law matters in New Jersey, the elder law team at Mandelbaum Barrett PC can help.
Reach out through our contact page to speak with our team. We are here to help you and your family navigate the legal complexities of aging and long-term care planning.