Asset Preservation when Government Benefits are needed
When an individual finds that he or she may need government assistance to pay for long term care or other medical necessities, how can that person meet the eligibility requirements of the government assistance program without becoming impoverished? This is a question explored in great detail at Deeb Elder Law, P.A. We tailor the answer to this question to the individual needs of each client, taking many factors into consideration.
Several asset preservation methods are available; each has pros and cons and will be measured against the individual family situation of each client. An attorney from Deeb Elder Law, P.A. will meet with you to assist you to find the best solutions for preserving your family’s assets, while permitting the individual in need of assistance to qualify for government benefits.
New Gifting and Transfer Rules: The Federal Deficit Reduction Act of 2005 was signed into law on February 8, 2006. The law was implemented in Florida by rule, effective November 1, 2007. The new law provides that ANY gifts or transfers, even those to your church, can render a person ineligible for government assistance. The new law changes the “look back” period from 3 years to 5 years. Under the old law, the penalty for transfers began running on the date of transfer. Under the new law, the penalty does not begin until a person is otherwise eligible and applies for government benefits. This applies to any transfer in which the person does not receive the full fair market value of the transferred asset in return. Many attorneys who do not practice Elder Law do not understand these new rules and sometimes advise clients to transfer assets for IRS or estate planning purposes. It is VERY IMPORTANT that no transfers be made without seeking the advice of a qualified Elder Law attorney. Otherwise your ability to pay for long term care may be diminished or eliminated. In the event that you have already made a transfer, you should consult with Deeb Elder Law, P.A. so that we can assist you in finding a feasible solution.
Asset Preservation from Creditors
This is a separate and distinct type of asset preservation and is a very specialized area of the law. Individual client’s needs in this area can range from relatively simple plans to very complex strategies. Deeb Elder Law, P.A. can analyze each client’s need in this area and provide the appropriate representation to our clients by our own attorneys, or in more complex situations, we will integrate our services with those of an associate firm, which concentrates on complex strategies.
