Will Paying Off House Affect Medicaid or Medicare?

I am on disability. I have Medicaid and Medicare. My brother won a lawsuit. He wants to pay my house off ($123,000 dollars). Will this affect my Medicaid and Medicare?

His gift likely won’t affect your Medicare, but it could definitely put your Medicaid at risk depending on how the transaction is handled.

Medicare is an “entitlement” program based on your work history or disability status, not your financial need.

• Having your mortgage paid off generally has no impact on your Medicare eligibility.

• Medicare does not have asset limits. Whether you live in a $100,000 home or a $1,000,000 home, your Medicare stays the same.

Medicaid, however, is a “means-tested” program, meaning it is strictly for people with limited income and resources.

• In most states, to keep Medicaid, you cannot have more than $2,000 in countable assets (the limit varies slightly by state).

• Your primary residence is usually an “exempt” asset, meaning its value doesn’t count toward that $2,000 limit.

• However, if your brother gives you the $123,000 directly to your bank account, Medicaid will see that as a massive spike in your income and assets. Even if you spend it 10 minutes later to pay off the house, that brief moment of possession could disqualify you for months or years.

How to Protect Your Benefits

To keep your Medicaid while accepting this gift, you may consider the following common strategies:

• Direct payment to the lender. If your brother pays the bank directly, the money never touches your hands. While this is safer than a cash gift, some state Medicaid offices may still view the “debt relief” as a form of unearned income. You must check your specific state’s rules on “in-kind support and maintenance.”

• Special needs trust (SNT). Your brother places the money into a third-party SNT, and the trust pays off the mortgage. Because the money is held by the trust and not you, Medicaid typically ignores it.

• ABLE account. If your disability began before age 46, you can use an ABLE Account. However, these have annual contribution limits (usually around $19,000), so it wouldn’t be enough to cover a $123,000 mortgage payoff in one go.

An Important Note Regarding SSI

If your disability payment comes from Supplemental Security Income (SSI) rather than Social Security Disability Insurance (SSDI), the rules are even stricter. A mortgage payoff can be considered in-kind support and maintenance and could reduce your monthly check.

Call our office to schedule an appointment to learn more about how to protect or to apply for Medicaid.

~ Elder Law Answers

Will Mom Face a Medicaid Penalty If She Sells Her Home?

My mom and dad owned a home. He went into a nursing home under Medicaid and later passed away. My mom retained the home (not recovered under Medicaid Recovery) because she still lived there. The home is still in her name and my deceased father's name. Now my husband and I would like her to sell the home; we would use the proceeds to buy a house for her to live with us. Would she be penalized under the 60-month lookback period?

The 60-month lookback probably isn’t your biggest concern here. A separate issue — your dad’s deferred Medicaid estate recovery claim — is.

What the 60-Month Lookback Actually Covers

The look-back period only applies to gifts or transfers for less than fair market value made by someone who is (or may soon be) applying for Medicaid themselves. If your mom simply sells the home for what it’s worth, that’s not a gift — it’s just converting one asset (a house) into another asset (cash) of equal value. Selling at fair market value doesn’t trigger a penalty, no matter when it happens.

In other words:

• Selling the home for fair market value: Not a lookback problem.

• Buying a new house in your mom’s own name with the proceeds: Also not a problem — she’s just converting cash into a home she’ll live in.

• The risk area: If the new house ends up titled in your name (or jointly with you) rather than hers, and she’s contributing the money without retaining ownership, that portion could be treated as a gift to you. If your mom applies for Medicaid within five years of that transfer, it could create a penalty period. Keeping the new home titled in her name (even if she lives with you) avoids this.

The Bigger Issue: Your Dad’s Deferred Medicaid Claim on the House

Here’s the part that’s easy to miss. Medicaid estate recovery rules provide protection for surviving spouses — states aren’t allowed to seek reimbursement for a deceased beneficiary’s long-term care costs while the surviving spouse is alive, and they can’t put a lien on the home or collect through its sale while the surviving spouse lives there. That protection is why nothing happened when your dad passed away.

But “protected” isn’t the same as “forgiven.” Once the surviving spouse passes away, the state may then seek to recover from the estate any money it spent on the deceased recipient’s care. In other words, the claim is deferred, not erased — and some states’ rules tie that deferral specifically to your mom continuing to live in that home, not just to her being alive.

That matters a great deal here, because your mom is about to sell the home and move, which could be the exact trigger that ends the deferral in some states, depending on how that state administers recovery. Some states tie estate recovery deferral to the protected person continuously living in the home. Federal guidance implies that states can recover when:

• the surviving spouse dies,

• when a protected child’s status changes, or

• when a protected relative moves out of the home — and moving out to live with you could fall into that category depending on state policy.

What to Do Before Listing the House

1. Contact the state Medicaid agency (or your dad’s old caseworker) and ask directly: “Is there a deferred estate recovery claim tied to my father’s Medicaid benefits, and does selling the home or my mother moving out trigger it?” Get the answer in writing if you can.
    

2. Clear up the title first. Since the home is still listed in both your mom’s and your late father’s names, you’ll likely need a death certificate, an affidavit of survivorship, or a short probate step (depending on how they held title — joint tenancy vs. tenants in common) before the sale can close cleanly. A title company or attorney can confirm which applies.
    

3. Keep the new home titled in your mom’s name, not yours, to avoid creating a transfer-penalty issue if she ever needs Medicaid herself.
    

4. Talk to an elder law attorney in your state before the sale closes. In this type of situation — involving deferred spousal recovery plus an upcoming sale — state-specific rules make a real difference, and getting it wrong could mean a chunk of the sale proceeds unexpectedly goes to repaying your dad’s Medicaid costs instead of funding your mom’s new home.

What This Means for Your Family

The 60-month lookback likely isn’t the risk — selling at fair value and buying a new home in your mom’s name should be fine on that front. The real question to run down is whether your father’s deferred Medicaid estate recovery claim gets triggered by this sale, since that depends on your state’s specific rules and is worth confirming before you sign anything.

Elder Law Answers

Probate v. Non-Probate: What Is the Difference?

When planning your estate it is important to understand the difference between probate and non-probate assets.

What Is Probate?

Probate is the process through which a court determines how to distribute your property after you die. Some assets are distributed to heirs by the court (probate assets), and some assets bypass the court process and go directly to your beneficiaries (non-probate assets). 

The Probate Process

The probate process includes filing a will and appointing an executor or administrator, collecting assets, paying bills, filing taxes, distributing property to heirs, and filing a final account. This can be a costly and time-consuming process, which is why some people try to avoid probate by having only non-probate assets.

Probate Assets vs. Non-Probate Assets

Probate assets are any assets that are owned solely by the decedent. This can include the following:

• Real property that is titled solely in the decedent's name or held as a tenant in common

• Personal property, such as jewelry, furniture, and automobiles

• Bank accounts that are solely in the decedent's name

• An interest in a partnership, corporation, or limited liability company

• Any life insurance policy or brokerage account that lists either the decedent or the estate as the beneficiary

Non-probate assets can include the following:

• Property that is held in joint tenancy or as tenants by the entirety

• Bank or brokerage accounts held in joint tenancy or with payable on death (POD) or transfer on death (TOD) beneficiaries

• Property held in a trust

• Life insurance or brokerage accounts that list someone other than the decedent as the beneficiary

• Retirement accounts

When planning your estate, you need to take into account whether property is probate property or non-probate property. Your will does not control the distribution of non-probate property. Check the ownership of your property and your accounts to make sure jointly owned property will be distributed the way you want it to. It is also important to review your beneficiary designations.

Additional Reading

• Probate Law: A Look Across States

• Navigating Disputes in Probate Court

• 3 Common Probate Questions

• The Benefits and Risks of DIY Estate Administration

  ~ Elder Law Answers

How to Get Medicaid Coverage for Care at Home

Traditionally, Medicaid has paid for long-term care in a nursing home, but because most individuals would rather be cared for at home and home care is cheaper, all 50 states now have Medicaid programs that offer at least some home care. In some states, even family members can get paid for providing care at home. 

Medicaid is a joint federal-state program that provides health insurance coverage to low-income children, seniors, and people with disabilities. In addition, it covers care in a nursing home for those who qualify.

Medicaid Home Care Services

Medicaid home care services are typically provided through home- and community-based services "waiver" programs to individuals who need a high level of care, but who would like to remain at home. Medicaid's home care programs are state-run, and each state has different rules about how to qualify. Because Medicaid is available only to low-income individuals, each state sets its own asset and income limits.

For example, in 2021, an applicant in New York must have income that is lower than $884 a month and fewer than $15,900 in assets to qualify. But Minnesota's income limit is $2,382 and its asset limit is $3,000, while Connecticut's income limit is also $2,250 but its asset limit is just $1,600. 

States also vary widely in what services they provide. Some services that Medicaid may pay for include the following: 

• In-home health care

• Personal care services, such as help bathing, eating, and moving

• Home care services, including help with household chores like shopping or laundry

• Caregiver support

• Minor modifications to the home to make it accessible

• Medical equipment

In most states it is possible for family members to get paid for providing care to a Medicaid recipient. The Medicaid applicant must apply for Medicaid and select a program that allows the recipient to choose his or her own caregiver, often called "consumer directed care."

Most states that allow paid family caregivers do not allow legal guardians and spouses to be paid by Medicaid, but a few states do. Some states will pay caregivers only if they do not live in the same house as the Medicaid recipient. 

Contact our office at 803-980-1199 and schedule an appointment today!

~ Elder Law Answers

Medicaid's Coverage of Nursing Home Care

For better or worse, Medicaid is the primary method of paying for nursing home care in the United States. However, navigating the Medicaid system is complicated and confusing.

 Medicaid Basics 

Medicaid (sometimes called by other names, such as Medi-Cal in California, MassHealth in Massachusetts, and TennCare in Tennessee) is a joint federal-state program that provides health insurance coverage to low-income children, seniors, and people with disabilities. In addition, it covers long-term care for those who qualify. This coverage has traditionally meant care in a nursing home, although coverage of care in an assisted living facility or at home is possible (see below). 

In the absence of any other public program covering long-term care (Medicare provides only limited nursing home coverage), Medicaid has become the default nursing home insurance of the middle class. Lacking access to alternatives such as paying privately or being covered by a long-term care insurance policy, most people pay out of their own pockets for long-term care services until they become eligible for Medicaid. 

Medicaid Rules Vary By State

Each state operates its own Medicaid system, but this system must conform to federal guidelines in order for the state to receive federal money, which pays for about half the state's Medicaid costs. This complicates matters since the Medicaid eligibility rules are somewhat different from state to state, and they keep changing. To be certain of your rights, consult an elder law attorney to guide you through the complicated rules of the different programs and help you plan ahead. While the majority of nursing homes accept Medicaid patients, there are some that do not. Even nursing homes that accept Medicaid recipients may only have a limited number of Medicaid beds available. Nursing homes must be certified by the state in order to accept Medicaid payments. Check with the facility before applying for admittance. 

Medicaid Qualifications and Medical Requirements

To qualify for coverage, applicants must have limited assets and income. You typically can't have more than $2,000 in assets; the figure may be slightly higher in some states. To lower your assets, you need to spend them down by paying for things that benefit the Medicaid applicant. You can't simply give away your resources in order to qualify for Medicaid. Income limits vary by state. In some states, you can keep excess income in trust; in other states, you must pay your excess income to the nursing home. 

In addition to the strict income and asset limits, you must meet level of care requirements in order to qualify for nursing home coverage. Each state sets its own level of care criteria, and the criteria are not always clear. The state looks at an applicant’s functional, medical, and cognitive abilities to determine if they need care in a nursing home. You are usually determined to need long-term care if you need help with two or more activities of daily living (such as bathing, dressing, eating, moving, and going to the bathroom). But to need a nursing home level of care, you may also need frequent medical care, such as assistance with medication, injections, IVs, or other medical treatment. The state may also consider your cognitive abilities—i.e., whether you have the ability to make decisions on your own. 

Once you qualify for Medicaid, the program pays for all your basic expenses, but nursing home residents may be charged extra for certain amenities, like a private room, comfort items, or specially prepared food. 

In-Home Care and Assisted Living 

In addition to nursing home care, Medicaid may cover some home care services or, in limited circumstances, care in assisted living. Home care is typically provided through home- and community-based services "waiver" programs to individuals who need a high level of care but who would like to remain at home. States vary widely on how to qualify and what is covered. Almost all state Medicaid programs will cover at least some assisted living costs for eligible residents. - Elder Law Answers

Call our office at 803-980-1199. Schedule an appointment to learn more about Medicaid. Be prepared BEFORE you need Medicaid services!

What Is a Trustee in Estate Planning?

A trustee is the person or institution appointed to manage a trust on behalf of beneficiaries of the trust.

Being a trustee is a significant responsibility. Those serving in this role must always act in the best interests of beneficiaries when carrying out their trust management duties, which include locating and protecting trust assets, investing assets prudently, distributing money and property to beneficiaries, keeping track of income and expenditures, and filing taxes.

When a trustee does not fulfill their duties, beneficiaries have the right to file a lawsuit against them. Trust litigation can have significant financial and emotional consequences, draining estate assets and damaging the relationships between the parties involved.

While a family member is often the first choice to serve in this position, to avoid potential conflicts of interest and disputes among heirs, a professional, independent trustee might be a better choice.

Trust Fundamentals

Most people have heard of trusts and have a basic idea of how they work. The inner workings of a trust, however, are complex and may not be as well understood.

Trusts are created by a document called a trust agreement (aka a trust deed or trust instrument). Some trusts are also created by a person’s will. There are three parties to a trust:

• The grantor is the person who establishes the trust, funds it, and provides instructions about how to administer it in the trust document.

• The trustee is the person the grantor names in the trust document to administer the trust. They can be an individual, such as a trusted family member, or an organization, such as a law firm or a financial institution. The trustee must voluntarily accept their position.

• The beneficiary is the individual (or entity, such as a charity) whom the grantor specifies to receive assets from the trust. Trusts can have multiple beneficiaries.

Trusts can hold many types of assets, including financial assets like cash, stocks, bonds, and bank accounts, as well as real estate, life insurance, retirement accounts, personal property, and even things like business interests and digital assets.

The assets that are transferred into the trust become the property of the trust — they no longer belong to the grantor.

Trust property is subject to the trustee’s management and control, but the trustee doesn’t own the assets, either. Rather, they hold and administer trust property/assets for the benefit of a third party (the beneficiary/beneficiaries). A beneficiary only owns a trust asset once the trustee distributes it to them from the trust.

Duties and Responsibilities of a Trustee

Because trust assets do not belong to the trustee, they are not free to do whatever they want with the assets. They must follow the terms that the grantor specifies in the trust document, as well as certain trust laws.

Fulfilling the Grantor’s Wishes

Trusts are highly flexible and can contain detailed provisions about how to distribute money and property to beneficiaries. For example, the grantor may provide instructions that a beneficiary receives assets only once they reach a certain age, educational, or career milestone.

The conditions the grantor can place on distributions are virtually limitless. But whatever condition the grantor sets, unless the condition is illegal, uncertain, or against public policy, the trustee must follow it.

Enforcing a conditional gift from a trust can place a greater burden on the trustee because they will have to determine whether the beneficiary has satisfied a condition necessary to receive a gift.

If there is any uncertainty about a condition being met, this could cause tension between the trustee and the beneficiary. Anyone using trust-based conditional gifting should therefore make sure the trustee is up to the potential challenges of conditional gifting and other detailed trust instructions.

Fulfilling Fiduciary Duties

Although their duties are specific to the trust document, the types of assets held in the trust, and the trust’s purpose, a trustee also has what’s known as “fiduciary duties.”

These are legal duties that they must follow when managing a trust for the trust’s beneficiaries. They include the duties of care, loyalty, good faith, and neutrality.

Fiduciary duties require the trustee to manage the trust in a reasonable, good faith manner. They must put the interests of the trust and its beneficiaries above their personal interests.

Fulfilling Administrative Responsibilities

The most basic job of a trustee is to manage and administer trust assets, in accordance with the trust’s terms and purposes and in the interests of the beneficiaries. Typically, this includes the following responsibilities:

• Identifying, collecting, and valuing trust assets

• Managing investments of trust assets

• Protecting the value of trust property

• Distributing assets/payments to beneficiaries

• Paying debts and taxes

• Preparing and filing financial reports

• Keeping a record of all transactions

• Communicating with beneficiaries, answering their questions, and disclosing information to them

• Making decisions as needed to fulfill the trust’s provisions

On this last point, many grantors give a trustee some degree of discretionary powers, such as the option to enforce a conditional gift provision.

While authorizing a trustee to use their discretion gives them some leeway to decide what to do — or not do — the trustee must not violate their duties or beneficiaries’ rights when making such decisions.

Failure to Fulfill Duties and Trust Litigation

Anyone who accepts the position of trustee needs to understand its significant responsibilities. Once they accept their position, they usually cannot step aside without the beneficiaries agreeing to remove or replace them. Often, trust agreements further stipulate that a trustee can only be removed for cause.

There could be grounds for removal if a beneficiary (or multiple beneficiaries) believes the trustee is not upholding their legal responsibilities. For example, they might suspect that the trustee is not making distributions per the grantor’s instructions, not disclosing information about trust assets, using trust assets to enrich themselves, or mismanaging assets.

If a beneficiary suspects that a trustee has not met their legal obligations — whether those obligations are imposed by a trust document or under the law — the beneficiary could sue them.

Trust litigation can result in a trustee being held personally liable and ordered to pay back beneficiaries for financial harm. They can also be ordered to provide a full accounting of all trust assets and removed from their trustee position.

Types of Trustees and Whom to Choose

A close friend or family member, a third-party professional, or an independent trust company are commonly named as trustees. Co-trustees are also possible.

It is recommended that the grantor additionally name a successor, or backup, trustee. If a trustee is removed and no successor is named, the court could appoint someone new to the role.

Individual Child or Family Member

On the surface, an adult child who is responsible, trusted, and knows the family dynamics is a good choice for trustee. But a child — or any family member — may in practice not be the most appropriate person.

Being close to the family is a double-edged sword. Family relationships are complicated, and those complications could spill over into trust administration, especially in cases where trust beneficiaries are members of a blended family encompassing children from multiple marriages.

A person could be too close to make objective decisions, and even if they are acting objectively, their actions could be perceived as unfair or illegal, particularly if they are both the trustee and a beneficiary of the trust. And real or imagined wrongdoing on the part of a trustee can have the same outcome: trust litigation.

A Cautionary Tale: The Estate of Tony Bennett

A recent lawsuit over the estate of Tony Bennett illustrates why grantors should think twice before naming a child as trustee.

After the famed crooner Bennett passed away, his tangible personal property was supposed to be equally distributed among Bennetts’ four children from the family trust, with Danny, his oldest son from his first marriage, serving as trustee.

However, Bennett’s daughters from his second marriage, Antonia and Johanna, filed a trust lawsuit accusing Danny of mismanaging their late father’s assets, withholding information from them, and personally benefiting from the estate.

Antonia and Johanna requested a full accounting of Bennett’s assets and financial affairs. If the court finds that Danny violated his duties as trustee, the sisters could petition the court to remove Danny, and the court could replace him with an independent trustee.

Consider a Private or Professional Trustee

Bennett likely chose Danny as trustee because Danny had served as his longtime manager and was money savvy. Yet the lawsuit over the Bennett family trust shows how a parent might not fully think through the implications of one child acting as trustee for another child or children.

Nothing can bring out family disputes quite like money matters. The Bennett situation is a case study in how an independent trustee is sometimes a better option from the start.

An independent trustee that specializes in trust fund management, such as an attorney, advisor, or accountant, a private fiduciary from an independent trust company, or a corporate trustee from a financial institution like a bank, can bring an unbiased, outside perspective that helps to avoid family discord.

Grantors also need to consider that a child or other family member might have the right skill set to serve in this role but lack the necessary practical experience. In some instances, it might make sense to appoint co-trustees — one family member and one professional.

At a minimum, a trustee chosen from within the family should have a relationship with an estate planning attorney who can help them perform trust management competently, fairly, and legally.

(From Elder Law Answers)

Shielding Older Adults from Government-Impersonation Scams - from Elder Law Answers

Takeaways

• Government agencies will not demand immediate payment by gift card, wire transfer, cryptocurrency, or cash. Nor will they ask for a Social Security number to “protect” benefits or determine eligibility.

• Seniors and their families can reduce fraud risk by protecting personal information, verifying unexpected requests independently, and consulting someone they trust before taking action.

• Report suspected fraud promptly, even if no money changed hands. If money or sensitive information was shared, contact the relevant financial institution and credit bureaus immediately.

Elder fraud has become a common form of financial exploitation across the country. Federal officials have estimated losses to be in the billions of dollars each year among older Americans, with government-impersonation schemes among the most reported types of fraud. For example, fraudsters may contact older adults and claim to be with the Social Security Administration (SSA) or the Department of Health and Human Services (HHS) while trying to extract information or money from them.

Scammers do not target older adults because they are less capable. They target this population because they may assume they have savings, established credit, and less familiarity with newer digital tactics. Awareness and preparation can make it harder for scammers to succeed.

How These Scams Work

Most impersonation and fraud schemes follow a consistent pattern, regardless of the specific story a scammer uses. It generally unfolds in four stages:

• Pretend. The scammer claims to represent a trusted source, such as the SSA, the HHS’s Office of the Inspector General (HHS-OIG), a bank, or a well-known company. They may already have some of the potential victim’s personal information, which makes the approach feel legitimate.

• Prize or problem. The scammer either offers something appealing, such as a benefit increase or a prize, or creates fear by claiming there is a serious problem, such as  a suspended Social Security number or a fraud alert on an account.

• Pressure. They tell the person to act immediately, often to “avoid arrest” or “protect” their benefits or accounts, leaving little time to verify the claim.

• Payment. The scammer requests payment or personal data through unusual channels, such as gift cards, wire transfers, cryptocurrency, cash delivered in person, or a Social Security or Medicare number provided “to confirm eligibility.”

A genuine call from the SSA or HHS-OIG will never ask a beneficiary to wire money, purchase gift cards, send cash, or disclose a Social Security number. That single rule can help older adults avoid most government-impersonation scams.

Practical Steps for Protecting Personal Data

Protecting personal information is often more effective than trying to recognize every new scam. Scammers’ tactics change constantly, but their goal remains the same: getting access to personal information or money.

Safeguard Your Most Personal Information

Personal information can be pieced together from public records, social media, data breaches, and previous contacts. Protecting key details makes it harder for scammers to create convincing requests.

• Do not share sensitive information. Never provide a Social Security number, Medicare number, bank account information, or online-account password to an unsolicited caller, texter, or email sender. Caller ID can be spoofed, so a government agency’s name or number does not prove that the contact is legitimate.

• Protect important documents. Store Social Security and Medicare cards securely at home rather than carrying them daily. Shred documents containing account or benefit numbers before disposing of them.

Check With the Official Source

Always verify unexpected requests through contact information you find yourself, not through a phone number, link, or website supplied by the person who contacted you.

• End the conversation. Hang up on unexpected calls claiming to be from the SSA, HHS-OIG, or the Medicare program. Then call the agency back using a number found independently on their government website.

• Monitor your accounts. Create an official my Social Security account to track benefit statements and catch unauthorized changes.

Pause and Talk With Someone You Trust

Scammers use urgency, isolation, and secrecy to prevent people from evaluating a request or seeking advice.

• Treat pressure as a warning sign. Legitimate agencies do not demand immediate action or ask beneficiaries to keep a conversation confidential from family members.

• Ask for help without fear or blame. Talk with a trusted family member, friend, or caregiver before sending money or sharing information in response to an unexpected request.

Create a Family or Caregiver Fraud-Prevention Plan

Families can reduce the risk of government-impersonation scams by agreeing in advance on how to handle unexpected calls, texts, and requests involving benefits or personal information.

• Choose a trusted contact. Agree on whom the older adult will call before sending money, sharing personal information, or responding to an urgent matter. This could be a family member, friend, caregiver, attorney, or other trusted advisor.

• Create a family code word. A code word can help relatives confirm that an urgent call or text is genuine, especially when a scammer pretends to be a grandchild or another family member.

• Set up account alerts. With the account holder’s permission, consider enabling notifications for large withdrawals, unusual purchases, password changes, or transfers to new recipients.

• Review important information together. Make sure contact information is current with banks, credit card companies, insurers, and government agencies. Knowing how to reach these organizations through official channels can make it easier to verify a suspicious request.

Open, respectful conversations can reassure older adults that they can seek help without fear of blame or embarrassment.

Limit Digital Exposure

Scammers can use information posted online to make impersonation attempts seem more personal and believable. Basic digital precautions can reduce the amount of information available to them.

• Handle messages carefully. Avoid clicking links or downloading attachments in unsolicited messages, even if they appear to come from a government agency or familiar company.

• Review privacy settings on social media accounts. Scammers often mine public posts for details, birthdays, family names, and routines that they can use to make impersonation attempts more convincing.

If You Encounter a Scam

Report suspected scams promptly, even if you recognized the fraud before sharing information or sending money. Reports can help investigators identify patterns, warn the public, and shut down schemes.

• Social Security-related scams. Report online or call the SSA OIG Fraud Hotline at 1-800-269-0271.

• Medicare, Medicaid, or other HHS program fraud. Report fraud attempts through the HHS-OIG Hotline.

• General fraud reports. File with the Federal Trade Commission.

If you believe you have already shared sensitive information or sent money to a scammer, contact your bank or credit card company immediately to limit further loss. Consider placing a fraud alert or credit freeze with the major credit bureaus.

The Rule That Can Prevent Most Impersonation Scams

No legitimate government agency will ever ask someone to move money to “protect” it, demand payment in gift cards or cryptocurrency, or ask for a Social Security number to determine benefit eligibility. Older adults and their families can help prevent fraud by verifying unexpected contacts and seeking advice before acting.

How Do I Give Gifts to My Grandchildren?

Gifting assets to your grandchildren can help them get a good start in life — it can also reduce the size of your estate and the tax that will be due upon your death. You can accomplish this in different ways.

How Do I Give Gifts to My Grandchildren?

Gifting assets to your grandchildren can help them get a good start in life — it can also reduce the size of your estate and the tax that will be due upon your death. You can accomplish this in different ways.

Outright Gifting

Perhaps the simplest approach to gifting is to give the grandchild an outright gift. You may give each grandchild up to $19,000 a year (in 2026) without having to report the gifts. If you're married, both you and your spouse can make such gifts. For example, a married couple with four grandchildren may give away up to $152,000 a year with no gift tax implications. In addition, the gifts will not count as taxable income to your grandchildren (although the earnings on the gifts, if they are invested, will be taxed). Just remember that any gift can interfere with Medicaid eligibility.

Protecting Your Gifts

But you may have some misgivings about making outright gifts to your grandchildren. There is no guarantee that the money will be used in the way you may have wished. Money that you hoped would be saved for educational expenses may instead be spent on a fact-finding mission to Fort Lauderdale. Fortunately, there are a number of options to protect against misuse of the funds:

• You can pay for educational and medical costs for your grandchildren. There's no limit on these gifts, meaning that you can pay these expenses in addition to making annual $19,000 (in 2026) gifts. But you have to be sure to pay the school or medical provider directly.

• You can make gifts to a custodial account that parents can establish for a minor child.

• You can transfer money into a TRUST established to benefit a grandchild.

• You can reduce your taxable estate while earmarking funds for the higher education of a grandchild through the use of a 529 account.

• You can use other gift vehicles like IRAs and savings bonds.

(From Elder Law Answers)

Call our office at 803-980-1199 to schedule an appointment! We can help you set up Trusts for you grandchildren!

What Is a Life Estate?

The phrase “life estate” is sometimes mentioned when discussing estate and Medicaid planning, but what does it mean?

A life estate is a form of joint ownership that allows one person to remain in a house until their death when it passes to the other owner.

Elder law attorneys use life estates to help their clients with:

• Avoiding probate

• Passing their house on to their children without having to give up the ability to live in it

• Medicaid planning

• Who Owns the Property in a Life Estate?

  With a life estate, two or more people each have an ownership interest in a property, but at different periods of time.

  The life tenant is the person holding the life estate. They possess the property during their lifetime. The remainderman (the other owner, such as a senior’s adult child) has a current ownership interest; however, the remainderman can't take possession until the death of the life tenant.

  What Are the Benefits of Life Estates?

  During their lifetime, the life tenant has full control of the property as well as the legal responsibility to maintain the property. The life tenant also has the right to use the property, rent it, and make improvements as they see fit, but they can’t sell or mortgage the property without the agreement of the remainderman. So, it may be easier to refinance, if necessary, before developing the life estate.

  If the property is sold, the proceeds of the sale are divided between the life tenant and the remainderman. If sold, the life tenant may receive a lesser share of the proceeds, as the shares are determined based on the life tenant’s age at the time – the older the life tenant, the smaller their share.

  Upon the death of the life tenant, the house will not go through probate. In other words, the ownership of the house will pass automatically at that time to the remainderman. In addition, because the property is not included in the life tenant's probate estate, it can successfully avoid Medicaid estate recovery.

  Estate Taxes

  Although the property will not be included in the probate estate, it will be included in the taxable estate.

  Currently, those with extremely high net worth need to be concerned about the potential of having to pay an estate tax. As of 2025, if the size of the estate is larger than $13.99 million, the property may be subject to estate taxation.

  Wait, What Is an Estate Tax?

  An estate includes everything that an individual owns, from their real estate and vehicles to their bank accounts and stocks. After an individual passes away, their estate may be subject to an estate tax – also often called a “death tax.” The IRS calls it a tax on your right to transfer your property at your death. Again, as mentioned above, your estate will be required to file an estate tax return only if your entire estate is valued at more than $13.99 million.

  Medicaid Eligibility

  Be aware that transferring your property and retaining a life estate can trigger a Medicaid ineligibility period if you apply for Medicaid within five years of the transfer. Purchasing a life estate should not result in a transfer penalty if you buy it on someone else’s home, pay an appropriate amount for the property, and live in the house for more than a year.

  For example, a senior who can no longer live in their home might sell it and use the proceeds to buy a home for themselves, their son, and their daughter-in-law. The father would hold a life estate, and the younger couple would be the remaindermen. Alternatively, the father could purchase a life estate interest in the children’s existing home.

  Assuming the father has lived in the home for more than a year and paid a fair amount for the life estate, the purchase of the life estate should not be a disqualifying transfer for Medicaid. Just be aware that there may be some local variations on how this is applied, so check with an estate planning or elder law attorney.

  If you want comfort knowing exactly what will happen to your home upon your death, a life estate may be a great option. An attorney can help you find out if a life estate is appropriate for your situation. Then a legal strategy is necessary to transfer property while qualifying for Medicaid benefits.

  To find out if a life estate is the right plan for you, find an estate planning attorney near you.

  Further Reading

  The rules regarding estate planning, including life estates, can be complex. Regulations can vary by state and your unique circumstances. To learn more about the various aspects of estate planning, take a moment to check out the following articles and Q&As:

  • The Basics of Estate Administration

  • 6 Steps in the Probate Process

  • Can I Transfer My Interest in a House in Which My Parents Own a Life Estate Without Affecting Their Medicaid?

  • Watch Out for These Potential Problems With Life Estates

  • Can My Mother Buy a Life Estate in a New Home, and How Will the Purchase Affect Capital Gains?

  
  Created date: 09/23/2016 - Elder Law Answers

When to Hire a Home Care Service for an Older Adult

For seniors and their families, hiring a home care service can support independence for the older adult while reducing stress on the family unit. A home carer can assist with activities of daily living (ADLs), like bathing, dressing, preparing meals, chores like laundry and dishes, medication management, and transportation to and from appointments and outings. Skilled caregivers who are qualified nurses can also provide medical care for those with more complex medical needs.

When an older adult needs help with daily activities, this support can be invaluable. As an alternative to assisted living, a home care service can help people age in place in their homes, which many older adults would prefer. In fact, AARP reports that 75 percent of adults 50 and older want to remain in their homes as they age.

An Alternative to Family Caregivers

Many seniors rely on family members such as their spouses and grown children to provide unpaid support. Family caregivers may struggle to balance their own personal responsibilities and care for their loved one, leading to stress. According to Cleveland Clinic, an estimated 60 percent of caregivers say they experience burnout, a state of physical, mental, and emotional exhaustion.

Meanwhile, older adults receiving care from a loved one may wrestle with feeling less independent, especially when the caregiver is their child.

Even having an in-home care person come a few times a week can afford family caregivers more time to meet their own needs and do things they enjoy. The older adult may also be more receptive to professional help from someone outside the family unit.

Care Costs

While in-home care has many benefits, it comes at a cost.

In some states, home- and community-based service (HCBS) waivers provide Medicaid funding for in-home care. These programs have stringent medical and financial requirements. Medicare may also cover some home care services for certain medical conditions if the older adult meets specific requirements. In either case, individuals who do not meet these requirements may need to turn to private care options.

As of 2024, the median cost of private in-home care in the United States ranges was about $6,000 a month. Caregiver qualifications, services offered, and location can affect rates.

Skilled nursing care provided by an in-home health aide is more expensive, with the monthly median cost nationwide approaching $6,500. Licensed nurses can provide medical care at home, including medication administration and wound care.

Most families seeking help with caregiving for an aging loved one must take cost into consideration. However, often just as important is knowing when it may be the right time to hire a home care service.

When to Hire a Home Care Service

When an older adult needs help with activities of daily living such as bathing, dressing, and preparing meals and prefers to age in place, it may be time to hire a home care service. Here are some indications that it may be time to consider in-home care for an aging loved one:

• The older adult is having trouble with daily tasks. Signs that may raise concerns include a less clean home, infrequent bathing, and social withdrawal. The individual may seem sad, apathetic, or have lower energy.

• The older adult does not want help from family members. They may be more receptive to care from a neutral third party.

• Family caregivers are feeling overstretched and exhausted. They may even be experiencing personal health challenges worsened by caregiving stress or want more time for themselves, their work, or other responsibilities. Hiring a professional caregiving service can free them up.

• In-home care is the older adult’s preference over other long-term care options and is medically appropriate. While many seniors prefer to age in place, other long-term care options come with benefits like increased social opportunities or more affordable round-the-clock medical care. Be sure to consider the various benefits and drawbacks of different care options before making a decision.

When choosing a home care agency, you may also want to research whether the agencies you are considering are certified by an accrediting body. The independent nonprofit Community Health Accreditation Partner is one such organization.

Related Reading

• Basics on Medicare Home Health Care Coverage

• Getting Help While Providing Care at Home for Aging Parents

• Checklist: Hiring a Home Care Provider

• Home Health Care Services Underutilized by Seniors, Study Shows