Charting the Course

With rising nursing home costs and complex financial eligibility requirements, many veterans and their families are turning to elder law attorneys like Paul J. Stano for advice on how to plan now for their own long-term care.

By: Ken McEntee
Date: 02/05/2008
Planning for long-term care is often very stressful. The average nursing home stay costs around $6,500 a month, and an assisted living facility could run more than $3,000 a month. No wonder so many people anxiously wonder how they’re going to pay for it.

The good news, if you are a veteran with wartime service, is that the Veteran’s Administration’s Aid and
Attendance program may help to offset a significant portion of the long-term care costs for you and your spouse/widow.

“Our office sees a lot of aging veterans who have served their country with dignity,” says elder law attorney Paul J. Stano. “Their needs and concerns are the same as with any elderly person facing long-term care issues. It is an honor for me and my office to be a part of helping them get the benefits they are entitled to.”
Located in Parma Heights, Paul has focused on estate planning for 25 years and the relatively new field of elder law since 1990.

Depending on your income and assets, the Aid and Attendance program could provide up to $1,800 a month toward your care. But because so little is known about this benefit, Paul says, it’s like finding a destination without a map.

An elder law attorney can help you navigate.

“Elder law attorneys are very familiar with the rules, regulations and the specific information and forms needed, for the Aid and Attendance program. We understand the complex issues that confront veterans and their families,” Paul explains.

Unlike some benefits—which are available only to veterans who were wounded or disabled while serving in the armed forces—millions of wartime veterans, their spouses and widows, may be eligible for the Aid and Attendance benefits if they are 65 years old or older and are homebound, in assisted living, or in a nursing home. To qualify, they must prove that their medical expenses exceed certain income and asset limitations.

“This is something that every veteran should take a look at,” Paul insists. “They have nothing to lose.”

The three-fold test to qualify for the program is based on income, assets, and the extent of your disability.

“It can take four to six months for the veteran’s application for benefits to be processed,” Paul says.
“Fortunately all benefits are retroactive to the original filing date. But if you or your spouse are ill, it can be a challenge to get everything done quickly.”

“Veteran’s benefits are only one of several concerns that you should consider when making plans for long-term care,” Paul adds. An elder law attorney can help you understand other options and considerations like:

• Estate plan documents such as powers
  of attorney, will and trusts.
 
• Analysis of any income tax, estate tax,
  or gift tax issues.
 
• Care options available in the local
  community.
 
• A review of your personal, financial and
  family resources.
 
• Analysis of financial suitability of any
  asset.
 
• Analysis of positives and negatives
  regarding all planning options.
 
• A calculation of the actual dollar benefit
  and/or cost of any helpful idea that is
  discussed.
 
• A determination on how qualifying for   
  VA benefits will affect Medicaid
  qualification.
 
• Review of VA, Medicare and Medicaid    
  as they apply to your circumstances.

Rules for Medicaid eligibility are complex and include asset limitations. Paul says although some families do spend virtually all of their savings on nursing home care, there are some strategies that can be used to protect your assets. But simply giving them away to family members is generally not an option. The law has severe penalties for people who give their assets away simply to create Medicaid eligibility. In Ohio, every $5,247 given away creates a one-month period of Medicaid ineligibility.

“A $10,000 gift to her grandchildren may put Grandma in the penalty box for two months,” Paul warns. “It’s a good idea to plan for your long-term care well in advance, while you are well.”

To help with your long-term planning, Paul has written several guidebooks about elder care planning, veterans benefits and hospice care, as well as a book entitled, “Alzheimer’s Survival Guide: Seven Secrets of Estate Planning for People with Memory Loss and Dementia.” All proceeds from the book are being donated to the Alzheimer’s Association. For a copy of any of the guidebooks or for information, email Paul at elder@stanolaw.com or call his office at 440-888-6448.

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