David Waterstradt Blog

If you're in Coopersville MI, an elder lawyer can help you protect your assets, navigate complex legal matters, and ensure your healthcare wishes are honored. Contact David Waterstradt today to schedule a consultation.

Elder law attorneys provide legal services for seniors. Discover the specific services you can get from a qualified elder law attorney.

Tax Planning The goal of year-end tax planning is usually to defer income into the next year and gain deductions in the current year. This may be reversed this year as it is anticipated that President Biden will raise taxes and, therefore, taxpayers may want to accelerate income into the current year and defer deductions to next year. However, many speculate that President Biden’s proposals for tax increases on high earners are unlikely to be addressed until at least 2022.

Managing the care needs of an aging parent can be a daunting task. When it becomes clear that an older adult can no longer care for themselves safely in their home, there are many options to consider such as the quality of their care, their safety, and the cost (including when and how Medicaid and/or Veterans benefits might become available). These considerations become confusing when faced with last minute decision making, marketing campaigns and promises of salespeople who are under pressure to fill rooms. Most people are even confused by the different options available and sometimes the wrong placement decision for a loved one can be disastrous.

On December 7, 2016, the U.S. Senate passed the Special Needs Trust Fairness Act. This Act makes it possible for a disabled adult who is mentally competent to establish his or her own special needs trust if they acquire assets that will put them over the asset limit for programs such as Medicaid or SSI. It corrects the false presumption in prior law that all disabled persons lack the mental capacity to handle their own legal and financial affairs.

December 2017 Newsletter Article

The IRS, State of Michigan and Veterans Administration have completed their annual adjustments to important thresholds in the estate planning and elder law world. Here is a quick reference guide to the current numbers.

On December 7, 2016, the U.S. Senate passed the Special Needs Trust Fairness Act. President Obama reportedly intends to sign it. This Act makes it possible for a disabled adult who is mentally competent to establish his or her own special needs trust if they acquire assets that will put them over the asset limit for programs such as Medicaid or SSI. It corrects the false presumption in prior law that all disabled persons lack the mental capacity to handle their own legal and financial affairs. Under prior law, only a parent, grandparent, court appointed guardian or a court itself could establish the type of special needs trust that allows a disabled individual to benefit from their assets for their supplemental needs while maintaining eligibility for Medicaid and SSI (also known as a (d)(4)(A) trust, after the enabling legislation).

Did you know it’s not necessary to spend down assets on unnecessary items when trying to qualify a loved one for Medicaid for nursing home related expenses? Medicaid’s asset limit is $2,000 for an individual. Many people will go on a spending spree and purchase unnecessary items to use up assets above the $2,000 limit in an attempt to qualify for Medicaid. However, rather than spending money unnecessarily, it is possible to set aside half or more of a loved one assets over $2,000 for future needs if this is done within Medicaid gifting rules. Medicaid will impose a disqualification period if assets are transferred. Nonetheless, assets can still be transferred if sufficient assets are converted to income to make sure the nursing home gets paid during the disqualification period. A skilled elder law attorney can guide you through these rules.