Elder law is a rapidly evolving area of practice, with changes to Medicaid rules, nursing home regulations, government benefit programs, and estate-related legislation affecting the planning options available to older adults and their families. Staying current with these developments is essential for families making long-term planning decisions that will affect access to care and asset preservation for years to come.
Mandelbaum Barrett PC’s March 2019 Elder Law Alert addresses developments in elder law 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 in New Jersey
Medicaid remains the primary public funding source for long-term nursing home care for most older Americans. The rules governing Medicaid eligibility are complex and depend heavily on individual financial circumstances. 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-based services all require careful analysis in light of each family’s specific situation.
New Jersey’s Medicaid program provides both nursing home coverage and home and community-based services through managed long-term services and supports programs. Understanding what types of care are covered, what the eligibility requirements are for different programs, and how an individual’s assets and income affect eligibility requires knowledge of both federal Medicaid law and New Jersey’s specific program rules and periodic updates to them.
Protecting the Family Home in Medicaid Planning
The family home presents distinctive considerations in Medicaid planning. Under Medicaid rules, the primary residence may be treated as an exempt asset while the Medicaid recipient or their spouse continues to occupy it. However, Medicaid estate recovery — through which the state seeks to recoup Medicaid costs from the estate of a deceased recipient — can affect the home after the recipient’s death. Planning strategies to address this risk vary in their appropriateness depending on individual circumstances, asset composition, and family goals.
According to the New Jersey Division of Medical Assistance and Health Services, New Jersey’s Medicaid program covers a range of long-term services and supports for eligible residents, and the program’s eligibility rules and asset treatment policies are subject to periodic regulatory changes that can affect planning decisions.
Powers of Attorney and Advance Directives
A complete elder law plan includes legal documents that address incapacity and end-of-life decision-making. A durable financial power of attorney designates an agent to manage financial and legal affairs if the principal becomes incapacitated. An advance directive documents health care wishes and designates a health care proxy to make medical decisions when the individual cannot. Ensuring these documents are in place, properly executed, and reviewed periodically as circumstances change is foundational to any complete elder law plan.
Contact Mandelbaum Barrett PC for Elder Law Guidance
If you have questions about Medicaid planning, long-term care, estate planning, powers of attorney, 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 elder law.