Elville and Associates

Can a nursing home take my stimulus check? This is a question many seniors and their loved ones have been asking since the first round of stimulus payments.

In December 2020, Congress approved a second round of stimulus checks for individuals making less than $75,000 a year. These checks are being sent to everyone who is eligible. This includes individuals on Medicaid and those living in nursing homes and senior living facilities. However, there are continuing reports that nursing homes and other senior living facilities are taking their residents’ stimulus checks without their permission.

Does a Nursing Home Have a Right to My Stimulus Check? 

As the second round of stimulus checks are delivered, many are still wondering, can a nursing home take my stimulus check? The Federal Trade Commission (FTC) wants residents of senior living facilities to know that stimulus checks are for their personal use. Residents of nursing homes are not required to turn their stimulus checks over to their senior living facility. Nor can a senior living facility take a stimulus check without their resident’s knowledge. In fact, these senior living facilities have no right to their residents’ stimulus checks at all.

Unfortunately, many nursing homes are inaccurately claiming that they are entitled to a resident’s stimulus check when that resident is on Medicaid. Not so. According to the CARES Act, the stimulus payment is a tax credit. Tax law states that tax credits do not count as “resources” when determining eligibility for Medicaid. Therefore, nursing homes and assisted living facilities cannot take their residents’ stimulus payments under any circumstances. This includes taking stimulus checks from residents on Medicaid.

What Should I Do if a Nursing Home Has Taken My Stimulus Check?

If your loved one lives in a nursing facility and you’re not sure if they received their stimulus check, talk with them as soon as possible. If you do know if they received their stimulus payment, you may need to ask the facility’s management for their “policy” regarding stimulus checks. If you suspect that their policy is unlawful, contact your state attorney general’s office and then file a complaint with the FTC. It is advised that you not make any accusations that could impact the level of care your loved one receives. Simply take the information and report it to the proper authorities.

How Does a Stimulus Payment Affect My Medicaid Eligibilty?

There are some things you need to be aware of regarding stimulus checks and your Medicaid eligibility.

The Social Security Administration does not count economic stimulus payments as income. Additionally, stimulus payments are excluded from a Medicaid recipient’s eligibility resources for 12 months from the date of their stimulus check. Therefore, if a senior’s stimulus payment puts them above Medicaid’s resource limit, their stimulus money needs to be spent down within a year. Otherwise, they may risk losing their Medicaid benefits.

What Can I Spend Stimulus Money on When on Medicaid?

The following are examples of what a Medicaid recipient may be able to spend the stimulus payments on without affecting their eligibility:

  • Payment on debt
  • Rent or mortgage payment
  • Making small repairs around the house
  • Buying household goods and personal comfort objects, such as clothing, electronics, and furniture
  • Purchasing needed medical equipment, seeing a dentist or eye doctor when those services are not covered by insurance

Learn more about how you can spend your stimulus if you live in a nursing home. If you have questions about how you or a family member in a nursing home can spend their stimulus checks, contact the estate planning and elder law attorneys at Elville and Associates.  The attorneys at Elville and Associates are well-versed in helping clients and their families plan for a variety of situations, be they crisis or pre-crisis situations.  Contact Community Relations Director Jeff Stauffer at jeff@elvilleassociates.com, or 443-937-3845 x117 as a first step in setting an appointment with one of our attorneys today.

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Long-term care is the care you need if you can’t perform daily activities on your own for an extended period of time. There are a number of different ways that long-term care can be provided. 

Most long-term care involves assisting with basic personal needs rather than providing medical care. 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, and going to the bathroom). Family members usually provide long-term care to start, but as an illness escalates paid care may become necessary. 

The following are the types of long-term care:

  • Home care from family member. The most basic form of long-term care is when a family member becomes the caregiver. It can involve simple tasks like buying groceries or more complicated ones like bathing and dressing. Sometimes family members can be paid for their work.
  • Home care aide. Home care aides provide companionship and socialization and assist with meal preparation, housecleaning, laundry, shopping, and errands. They are also called homemaker or chore aides.
  • Home health care aide. Health care aides provide personal care (bathing, grooming, etc.), assist with range-of-motion exercises, provide some medically-related care (empty colostomy bags, dress dry wounds, check blood pressure, etc.), and provide assistance with housekeeping and errands. They are often referred to as personal care assistants
  • Adult day care. Adult day care allows family members to get a respite from caregiving. In general, there are three types of centers: those that focus on social interaction, those that focus on health care, and special Alzheimer’s care centers.  
  • Assisted living facility. Assisted living facilities are a housing option for people who can still live independently but who need some assistance. Depending on the facility, that assistance may include help with meal preparation, housekeeping, medication management, bathing, dressing, transportation and some nursing care. Residents usually live on their own, in small apartments. Despite the emphasis on independence, supportive services are available 24 hours a day in order to provide different levels of help with activities of daily living. The level of medical supervision depends on the facility.
  • Nursing home. Nursing homes are the highest level of long-term care. They provide 24-hour care to residents. Staff provide help with daily activities such as feeding, dressing, and bathing along with medical care and physical, occupational, and speech therapy.

According to longtercare.acl.gov, someone turning 65 today has a 70% chance of needing some type of long-term care services in their remaining years.  

Costs for care can vary widely, from a few hundred dollars a week to pay for coverage when family members are at work to $300,000 or more a year for around-the-clock home care or care in the most expensive nursing homes, perhaps with private aides hired on the side. 

Long-term care costs, whether at home, in assisted living or in a nursing home, are paid primarily from three sources: out-of-pocket, Medicaid, and long-term care insurance. Medicare, the health insurance for people over age 65, only pays for up to 100 days of skilled nursing facility care following a hospitalization, and only for so long as the patient is deemed to need skilled care. It will also pay for skilled care at home — in theory indefinitely, but this may take some advocacy.

The estate planning and elder law attorneys at Elville and Associates are skilled in advising clients about long-term care options for families and their loved ones, including assisted living and nursing home placement, developing plans to pay for the cost of care in the short- and long-term, and establishing estate plans for families to ensure agents and powers of attorney are in place, wishes are carried out as intended.  Contact our office’s Legal Administrator, Mary Guay Kramer, at mary@elvilleassociates.com, or 443-741-3635, to set a time to discuss your family’s situation and create a road map that will offer peace of mind for all involved.

Presented by Elville and Associates’ Senior Principal and Senior Estate Planning Attorney Olivia Holcombe-Volke, this webinar is a discussion that will educate attendees about planning for their loved one with special needs.

Attendees will come to understand what is involved in the planning process for a special needs family and the importance of preserving the loved one’s financial security and quality of life.

The key issues of understanding the role of public benefits, making decisions about the future, Maryland ABLE, and using estate planning and trusts to protect assets will be discussed along with the types of special needs trusts and their specific purposes (along with who the decision makers and beneficiaries can be in these trusts). Also, to be touched upon will be the “planning team concept” – how your planning team (attorney, financial advisor, CPA) – can work together to help provide your family peace of mind during the special needs planning process.

Open to clients, advisors and the general public. For Certified Financial Planners, CPAs, and other professionals 1.5 continuing education hours are available for attending this presentation.

 

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

When you’re a business owner, estate planning must be integrated with a succession plan. Succession planning is about laying the groundwork for a smooth transition of business ownership to family members, employees, or buyers. Every transaction has tax consequences, and the tax cost of a business transfer can vary widely depending on how it is structured.

This session helps you identify the opportunities for successfully integrating your estate and business succession plans. Presented by guest speaker and attorney Charles Borek, attorney and founder of The Borek Group, LLC and Special Counsel to Elville and Associates, this webinar helps you to:

• Realize the need to integrate your estate and business succession plans

• Recognize the variety of ways available to transfer a business to family members

• Understand the use of trusts in succession planning

• Identify the advantages and disadvantages to using family limited partnerships

• Consider which ways of transferring business interests to key employees is most appropriate

• Differentiate a buy-sell agreement from a thorough succession plan

• Understand how tax consequences are impacted by the structure of your succession plan

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

Learn the truth about everything you always wanted to know about seniors’ real estate from an industry expert at the national level. Have you ever wondered about … – resources for care placement (and the pros & cons)? – you “don’t know what you don’t know” about choosing a retirement community? – how to decide which path is best when selling your home (as-is, fully renovated? Staged or empty & vacant?)? – how to get your home to “Empty” (consignment, auction, estate sale, yard sale, “Picker”?)? – what to do when the household money manager takes ill or doesn’t want to do it anymore? – why every Realtor should be talking about the importance of Power of Attorney for every client, regardless of age? – how to stay home safely if needed “while you wait” for your move? Shorten your learning curve on best practices when preparing for your rightsize and move.

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

Kelly Nelson, Outreach and Communications Manager from MarylandABLE, shares an overview of how ABLE accounts can help people with disabilities and their families save for the future without jeopardizing federal, state and local benefits. Attendees learn about:

— the eligibility criteria and enrollment process;

— features of an ABLE account and the account management process;

— tax-free savings and tax-free withdrawals for qualified disabilities expenses;

— accessing a Maryland State income tax deduction for contributions;

— how an ABLE account can be used in collaboration with a Special Needs Trust

Open to clients, the general public, and financial advisors. 1.5 continuing education hours are offered for CPAs, CFPs, and other professionals for attending this presentation.

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More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

A revocable trust is a legal document, often considered a substitute for a Last Will and Testament.  In other words, you write a revocable trust instead of a formal Last Will and Testament.  The trust is similar to a contract.  There are three parties to a trust.  (1) The Grantor is the person who establishes or writes the trust.   (2) The Trustee is the person who controls the money titled in the name of the trust.   (3) The Beneficiary is the person who receives the benefit of the money in the trust.   Typically, when drafting a revocable trust as a basic estate plan, the client occupies all three positions.   He or she writes the trust, controls the money in the trust, and all the money in the trust is spent for his/her benefit.   During lifetime, there is no change in access to accounts, selling or buying assets, or control.   You are still in control of your assets during your lifetime.  

At the first meeting with a prospective client, I begin by asking them to tell me about their family and their assets, because that is what estate planning is all about.  We need to discuss what their goals are and determine the best approach for writing a document to meet their specific needs.  Who should receive their assets?   When should their beneficiaries receive the assets?   How should they receive your assets upon your death?   And, all of this at the least cost.  

Avoiding the Probate Process

The purpose of the revocable trust is to ease the administration of your estate upon your death by avoiding the probate process.  After you write your trust, you change the title of your accounts and real estate to the name of your trust.  You also designate the trust as the beneficiary of some accounts, often life insurance policies.   Retirement accounts and annuities pass by beneficiary designation; and sometimes, you incorporate your trust as the beneficiary of these accounts.   As retirement accounts are assets that have different income tax consequences upon your death, there is no one size fits all to naming a beneficiary.   Incorrectly designating a beneficiary on your retirement account can have serious income tax ramifications upon the beneficiary who receives such assets.   You need to ask your attorney for advice regarding naming a beneficiary of a retirement account or an annuity.

If you align your assets properly to your trust, upon your death, your estate beneficiaries will avoid the probate process.   Probate is the process of transferring assets upon your death.   However, if your assets are titled in the trust, then your successor trustee steps in and distributes the assets in the trust according to the written instructions you provided in the trust document itself.   The purpose of establishing a revocable trust is to ease the administration of your estate upon your death by avoiding probate.

Sometimes, you can avoid the probate process by designating beneficiaries to all your accounts so the accounts pass immediately to the designated person, or you jointly title assets with another person.    During the initial conversation with your attorney, it is important to talk about your family.   If your beneficiary is young, disabled, or irresponsible, you may not want the money to flow into their hands immediately upon your death.  Discussing who should receive your assets, when they should receive the assets, and how they receive the assets is important.   Your attorney can provide advice as to the best way to protect your beneficiaries and ensure that your goals are met upon your death.   You spent a lifetime accumulating your wealth, you do not want to be penny wise and pound foolish when you draft your estate plan.   As an experienced estate planning attorney who has drafted thousands of estate plans, I can offer suggestions you may not have considered.  Statistics offered by caring.com reflect just under half of Americans don’t engage in estate planning for a number of reasons; however, the process is rather straightforward and offers peace of mind and satisfaction once it is complete.  To get started, I offer a free consultation which is the first step to protecting your loved ones and writing an estate plan.

Nicole Livingston is a principal and senior estate planning attorney with Elville and Associates, an estate planning, elder law, and special needs planning firm based in Columbia and Annapolis.  To learn more about Nicole and her background, please click here.  To contact Nicole with questions or to set up a free initial consultation to begin your planning or review outdated documents, please email her at nicole@elvilleassociates.com, or call her at 443-393-7696.  

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Often when I talk to potential clients, they tell me that they do not have an estate because it sounds as if only people who are wealthy have an estate.   However, that is not true.   The definition of estate is all the money and property owned by a person, especially at death.   When we start to discuss what property people own, they are surprised to learn what is included in their estate.   The first step when meeting with a prospective client is to list all the assets they own and how they are titled.   This is the first step during the estate planning process.

What assets are included in your estate?  Real estate usually comes to mind first.  The title of real estate is determined by looking at the deed, not the deed of trust.   The deed of trust is the mortgage and does not always reflect who owns the real property.  The deed describes the Grantee or the buyer of the property.   If you are married, often you own the property as tenants by the entirety, which is a unique ownership for spouses only.  If you own property with another person who is not your spouse, then the real estate will be titled as joint tenants with right of survivorship or tenants in common.  If the deed is “silent” and does not specify the words “joint tenants” then the real property is held as tenants in common.   This is very important to determine because tenants in common ownership upon death passes according to your Last Will and Testament or through the intestacy statute if you did not write a Will.  Next, the contents of the home are included in your estate.  People often believe that these items should not be valued; however, the value is included in your estate for estate tax purposes.   

Cash accounts such as checking, savings, certificates of deposit, and money market accounts are also included in your estate.   Again, we need to look at the title of the asset, whether you own the account in your name alone or jointly with another person.  Brokerage accounts, stocks, bonds, and mutual funds need to be valued on the date of your death.   Retirement accounts, such as IRAs (Individual Retirement Accounts), 401(k)s, 403(b)s, TSPs (Thrift Savings Plans), and annuities (qualified and non-qualified) are assets that are part of your estate.   

Even though clients are under the assumption that life insurance is not taxed, the value of the life insurance policies are included in your estate for estate tax purposes.   We need to calculate the value of these policies upon your death.  Vehicles, boats, and planes need to be valued and a part of your estate.   Often these items are in the name of one person.   Determining how these items are titled prior to death is an important aspect of the estate planning process.   

Everyone has an estate – be it a large estate as people often envision those who are celebrities to own or a person who simply owns a checking account in their name.   Planning as to who should receive the assets included in your estate, when they should receive these assets, and how they receive the assets is important to all clients whether they have a large or a small estate.  At Elville and Associates, I work with all clients and the size of their estate does not matter.   Everyone needs to have a plan in place for their loved ones, regardless of the size of their estate.   However, the reality is the majority of Americans engage in no estate planning at all (including a significant number of celebrities who have passed), despite the important financial and emotional benefits associated with it.  

Death and taxes are two certainties in life.  Whether you have a modest estate or a large estate, you need to have an estate plan.

Nicole Livingston is a principal and senior estate planning attorney with Elville and Associates, an estate planning, elder law, and special needs planning firm based in Columbia and Annapolis.  To learn more about Nicole and her background, please click here.  To contact Nicole with questions or to set up a free initial consultation to begin your planning or review outdated documents, please email her at nicole@elvilleassociates.com, or call her at 443-393-7696.  

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By: Nicole T. Livingston – Principal and Senior Estate Planning and Elder Law Attorney with Elville and Associates, P.C.

January 8th — A question most often asked to an estate planning attorney is regarding gifting of assets.   There is a significant amount of confusion regarding gifting.  To begin, there is an annual gift tax exclusion amount, which is the amount of money you can give to another person without having to report the amount to the Internal Revenue Service (I.R.S.).  A gift can be in the form of cash, a check, a stock certificate, or real estate.  Any asset that you give to another person with the intent of relinquishing dominion and control is a gift.  This includes adding a person as the joint owner of a bank account or adding a person to the title of your car or a deed.   Most people do not realize adding a person as a joint owner of a bank account is a gift.   If the amount of the gift exceeds the annual gift tax exclusion, then the person who made the gift is required to report that excess amount to the I.R.S.  Currently in 2021, the annual gift tax exclusion amount is $15,000.00.

The person who receives the gift does not file a gift tax return nor do they have to pay income or gift taxes upon the receipt of the gift.  When you give more than the annual exclusion amount to an individual, you need to report the amount to the I.R.S. on Form 709.  The purpose is to keep track of the amount of money you gift during your lifetime.   You have a lifetime gift tax exclusion amount.  The lifetime amount is the same as the federal estate tax exemption.  The federal estate tax exemption in 2021 is $11,700,00.00 per person.  If you gift more than this amount during your lifetime, then you will owe a federal gift tax.  The rate is the same as the federal estate tax – which is 40%.  The I.R.S. requires you to file a Federal Form 709 for each gift that exceeds the annual gift tax exclusion amount.  Often, clients inquire if it is required if they do not have assets anywhere near the amount of the federal estate tax exemption.   My response is “Don’t mess with the I.R.S.”   

Basis is cost, the second most misunderstood aspect of gifting.   When you gift assets with appreciation such as stock or real estate, then the person who receives the asset also keeps the same basis that the giver of the gift had.   For example, if a stock was purchased for $10.00, then the person who receives the stock as a gift keeps the original cost basis of $10.00.   This is a significant issue with assets that have significantly appreciated.   When you receive stock or real estate as an inheritance (not a gift), then you as the receiver of the asset obtain a new cost basis.   The new cost basis is the fair market value of the asset upon the death of the original holder.   For example, if your dad dies and he leaves you stock that he purchased for $10.00 and now the stock is worth $100.00, then your new cost basis when receiving the stock upon his death will be $100.00.   If you immediately sell the stock for $100.00, then you do not have to pay any capital gains tax.   If your dad gifted the stock to you while he was alive and upon his death you sell the stock for $100.00 you will have to pay a capital gains tax on the difference between the original cost basis ($10.00) and the fair market value ($100.00) – a $90.00 gain.  The capital gains tax can be as high as 28%.  You need to pay both federal and state taxes.   In conclusion, it is best to receive appreciated assets as an inheritance rather than a gift.  

Before you add someone’s name to an account or a piece of property, consult an estate planning attorney.  Not only do we have to discuss whether you need to file a Federal Form 709 and what the cost basis ramifications are, there are elder law issues regarding gifting and applying for Medicaid.   Talk to an attorney before you gift any assets!

Nicole Livingston is a principal and senior estate planning and elder law attorney with Elville and Associates, an estate planning, elder law, and special needs planning firm based in Columbia and Annapolis.  To learn more about Nicole and her background, please click here.  To contact Nicole with questions or to set up a free initial consultation to begin your planning or review outdated documents, please email her at nicole@elvilleassociates.com, or call her at 443-393-7696.  

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Elville and Associates’ Stephen R. Elville and Meghan E. McCulloch Named to 2021 Maryland Super Lawyers List and Rising Stars Lists, Respectively

Authored by:  Jeffrey D. Stauffer – Community Relations Director

Stephen R. Elville, Managing Principal and lead attorney of Elville and Associates, P.C., has been selected to the 2021 Maryland Super Lawyers list. Each year, no more than five percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.  This is Mr. Elville’s fifth consecutive year being named to the Maryland Super Lawyers list and sixth overall.

Meghan E. McCulloch, Principal and lead attorney of Elville and Associates’ Estate and Trust Administration practice group, has been selected to the 2021 Maryland Rising Stars list.  Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.  This is Ms. McCulloch’s sixth consecutive year being named to the Maryland Rising Stars list.

“I am humbled and blessed to named to this year’s Super Lawyers list, and to witness our law firm’s growth in 2020 despite the challenges of the COVID-19 health crisis,” remarked Mr. Elville upon hearing of his recognition.  “Having had our best year ever, and having received this continuing recognition, I give credit to all the attorneys and staff members of Elville and Associates, to our client family and all of our referral and business partners, and to all of my teachers, mentors, and colleagues who have helped me along the way.”

Mr. Elville works with individuals and families to provide a unique attorney-client experience and peace of mind solutions to the challenges they face with estate planning, asset protection, and tax planning issues, and with disability and long-term care planning issues.  Mr. Elville has extensive experience in working with clients involved in crisis situations, and also brings a unique and personalized approach to pre-crisis planning.  Mr. Elville is currently a member of the National Association of Elder Law Attorneys (NAELA), Elder Counsel, Wealth Counsel, the Academy of Special Needs Planners, and the National Network of Estate Planning Attorneys.  He is the past Chair of the Howard County Bar Association Estates & Trusts and Elder Law Sections and is the past President of the Coalition of Geriatric Services (COGS). Mr. Elville currently serves as Chair of the Elder Law and Disability Rights Section Council of the Maryland State Bar Association and is a member of the Charitable Gift Planning Advisory Committee for Anne Arundel Medical Center (CGPAC). He also serves as Chair for Law Day Maryland.

Ms. McCulloch manages the firm’s Estate and Trust Administration practice group. She also handles estate planning and elder law matters, with an emphasis on special needs planning, including handling claims for Social Security disability benefits and Supplemental Security Income (SSI) benefits, at every level of appeal, including representation before the U.S. District Court of Maryland. She has a wealth of experience in addressing the unique needs of individuals and families as the navigate through the disability process.  Ms. McCulloch is also an Executive Board Member of the Maryland Association for Justice’s Disability Section and serves as a volunteer attorney with the Maryland Volunteer Lawyers Service.

Upon hearing of Ms. McCulloch’s Rising Star accomplishment again for 2021, Mr. Elville noted, “I am exceedingly proud of Meghan McCulloch on so many levels.  Beyond her professional accomplishments, obvious talent, and abilities, I am proud of Meghan’s commitment to her profession, her law firm and colleagues, and to excellence in advocacy, client care, and pro bono work.  Meghan is very capable and well-deserving of this recognition.  She is also a wonderful person and committed to her family.  I cannot say enough good things about Meghan, professionally and personally.  She is a true credit to the legal profession.”

To learn more about Mr. Elville and Mr. McCulloch, please visit here.  To learn more about Elville and Associates, its practice areas, commitment to client education, and events calendar, please visit www.elvilleassociates.com.

Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country. Super Lawyers Magazines also feature editorial profiles of attorneys who embody excellence in the practice of law. For more information about Super Lawyers, visit SuperLawyers.com.

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