Avoid Nursing Home Poverty + Spend Down

Updated : Oct 19, 2019 in Articles

Avoid Nursing Home Poverty + Spend Down

Hi everybody, Attorney Nicole Wipp here with
the Family & Aging Law Center. So today, I’d love to share with you a story
about our client, Jane. Jane, like so many of our clients, needed
nursing home level care. Yet, her family was so scared – because they
did not know what to do, just like so many people don’t know what to do. They had been being told, “you HAVE to do
a spend down, you have to spend down her money to $2,000 before she can receive benefits
for care…she can’t have two houses (which is what she had). She can only have one house! You’ve gotta sell one!” All of these things were being told to the
family, all coming at them, right left and center. They didn’t know what to believe. Well, luckily, her adult son, Bill, found
us, and came to us and said, “What can we do here? We’re being told that this is what we have
to do, but I feel like there’s something that I should be able to do, what can you do to
help me?” Well, what we did was we put in place a strategic
– and perfectly legal, by the way – plan to preserve some of Jane’s assets. And, by the time we were done, that $300,000
pot that Jane started with, we were able to save $177,681.15 …plus her house. Now, I don’t want to get into the nitty-gritty
of how all this works, because to be quite honest with you, it’s complicated, and you
know, it isn’t your job as the consumer to understand what I as the lawyer do for every
step of the way but what I will tell you is this: that there ARE strategies that we can
do to save money, and we do them every day here in this office the Family & Aging Law
Center. All of these strategies are perfectly legal,
like I said, and we can get them in place very quickly so that you can avoid a spend
down! This doesn’t mean that your loved one needs
to sacrifice their level of care. In fact, Jane – one of the big considerations
that her family had was that Jane needed a specialized type of care in the facility that
not all facilities actually provide, and if she wasn’t able to stay at this particular
facility, she would have ended up somewhere that the family did not want her to be. The other problem that Jane had, that a lot
of families have, is that Jane had been giving money to the family over the course of a couple
of years prior to coming to see us. Part of it was to help pay for her care, she
had been paying her son to help care for her. But the way that she was paying him is actually
not really allowed under the law and so if they wouldn’t have come to see us Jane would
have been faced with what’s called a penalty. This would have been a real problem for her,
because it would have subjected her to potential eviction from the facility that she was in
if they hadn’t legally straightened it out with our office. And so, by employing this legal strategy,
by putting this thing in place to save the money, and by doing all the things right from
beginning to end, we were able to help Jane avoid the penalty, avoid the eviction from
the facility of the family’s choice, and we were also able to save a significant amount
of money. Of the $177,581.15, part of that was an additional
home that she had that was out of state. That would have been a real big hassle for
the family, to have to quickly sell – in fact, they would have been only able to sell it
at a big time loss. So, this made it able to not only save the
money, but also to save the hassle of the situation, which it was – a major hassle for
everybody…just like all these are, because nobody wants this for their loved one, and
yet these are the things that we sometimes are forced to face. So, what we did for Jane, we can do for you
as well, but you’ve gotta come and talk to us, ok? That’s the big key. There’s no harm in talking to somebody that
is really ready, willing, and able to help you – and oh, by the way, can save you a lot
of money in the process! So please, if your family is facing this situation,
don’t sit there and try to figure it out by yourself. And don’t listen to all this crazy stuff that
everybody’s telling you! Come to a qualified elder law attorney, sit
down, have a conversation, and learn your options. It’s really the best thing for everybody involved. Call us at (248)278-1511.


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