Bill, age 57, worries about what will happen if he and his wife, Angela, become incapacitated and require long-term institutional care. He wants to act now, while still healthy. After consulting with Vasiliadis & Associates Bill and Angela update their Wills and Powers of Attorney. They also transfer their home and some of their investments into a Medicaid trust, naming themselves as beneficiaries and their daughter, Shirley, as trustee. To protect against adverse Medicaid eligibility consequences, they purchase long-term care insurance. The insurance is inexpensive due to their relatively young age. Five years later the insurance is no longer needed and is dropped. All of the assets in the trust are protected against nursing home costs.

Susan, an 82-year old widow suffers a massive stroke, leaving her paralyzed along the entire left side of her body.  After a short hospital stay she transfers to a nursing home, where she will likely remain for the rest of her life.  With fixed monthly income consisting of a $900 per month Social Security benefit, her $8,000 per month nursing home bill will soon impoverish her.  Fortunately, Susan’s children consult with Vasiliadis & Associates. They learn that Susan can qualify for Medicaid benefits to pay for the cost of her care and still keep a substantial portion of her assets.  With assistance from her attorneys, Susan gifts her cash and investments to her children, who use the money to buy a one-half interest in her home.  Rather than pay Susan in a lump sum, the children give her a Promissory Note that complies with statutory safe harbor requirements.  The loan is re-paid in monthly installments over a short period of time, after which Susan qualifies for Medicaid benefits to pay for the cost of her care.  After she dies, the children, through their survivorship interest in the Deed, become full owners of Susan’s home.