To properly assist clients, elder law attorneys must juggle knowledge of several different public benefits programs, many of which have unique eligibility requirements. Additionally, with multiple planning strategies and instruments available to assist clients with public benefits, attorneys must stay apprised of their distinctions. This blog is intended to provide both a definitional foundation and an up-to-date reference for the current year’s figures. It is best used as a supplement to your own research; it is not intended to be, and should not be considered, legal advice.
Medicaid is a needs-based, means-tested government healthcare assistance program administered jointly by federal and state governments.
Individuals, couples, and families living on limited income and assets (generally, $2,000 per month in most states) can qualify for Medicaid. Medicaid also generally covers indigent children, pregnant women, and individuals living with a disability, including those who are institutionalized.
Important notes:
A MAPT is a self-settled irrevocable trust designed to hold assets in a manner that will meet strict Medicaid eligibility standards while providing a thorough and thoughtful final distribution of client assets.
Persons who are proactively planning to protect assets from future long-term care expenses and estate recovery or those who are seeking immediate Medicaid eligibility and the trust is being implemented as part of a crisis plan
Important notes:
The federal health insurance program consists of four parts: (1) hospital insurance, (2) medical insurance, (3) additional care-related benefits, and (4) prescription drug coverage.
Individuals age 65 and older, persons under 65 who have received SSDI for at least two years, and individuals with end-stage renal disease or Lou Gehrig’s disease
Important notes:
A means-tested assistance program administered by the Social Security Administration (SSA) that provides financial support for basic necessities.
People with a disability who meet the SSA’s definition of “disabled” and seniors (age 65 and older), all of whom must meet strict income and asset limits
Important notes:
A public insurance program for disabled workers.
Disabled workers with sufficient work credits who meet SSA medical criteria
Important notes:
A trust that supplements an individual’s assets while restricting direct access to the funds.
Persons who are living with a disability, receiving public assistance, or whose life circumstances necessitate a barrier of protection between the beneficiary and their money
Important notes:
A specialized third-party SNT designed under the provisions of the SECURE Act to hold retirement assets and ensure continuing access to public benefits and lifetime stretch on distributions for disabled or chronically ill beneficiaries.
An individual with a qualified retirement account who wants to provide an inheritance to a disabled or chronically ill beneficiary while ensuring that they remain on public assistance
Important note:
Federal nutritional assistance program (formerly called food stamps).
Households with limited resources, including seniors (age 60 and older) and people with disabilities who meet specific criteria
An ABLE account is a savings account that allows disabled individuals to save without affecting means-tested benefits.
An individual who acquired their disability before turning 26 years old and is either receiving SSI or SSDI or has received a doctor’s certification that they meet the SSA definition and criteria regarding limitations
Important notes:
Financial assistance to reimburse a wartime Veteran or surviving spouse for long-term care costs incurred due to disability.
Veterans who meet service, medical, income, asset, and transfer rules can qualify. Concerning service, Veterans need not have served in combat or have been boots on the ground; they need only to have served at least 90 days of active duty, with one day during a congressionally defined wartime period.
Important notes:
A self-settled irrevocable trust designed to hold assets in a manner that will meet strict VA eligibility standards while providing a thorough and thoughtful final distribution of client assets.
Wartime Veterans and their spouses, particularly those with a primary residence
Important notes:
Monthly support for military retirees with combat-related disabilities.
Veterans who have completed at least 20 years of military, National Guard, or Reserve service; are retired under the Temporary Early Retirement Act; are on the Temporary Disabled Retired List; or are on the Permanent Disability Retired List
Financial support for military retirees with service-connected disabilities rated 50 percent or higher.
Military retirees who have completed at least 20 years of service, are eligible for military retired pay and have a service-connected disability with at least a 50 percent rating.
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