Archive for the ‘Retirement Trusts’ Category

Does Your Power of Attorney Provide for Creation of Pooled Trusts?

There may come a time when you are seeking to apply to the Medicaid program to provide an aide at home. If you are eligible and have income over the Medicaid income allowance ($787 in 2010) Medicaid will direct that you pay your excess income to the agency providing the aide.  However, you have a there may come a time when you are seeking to apply to the Medicaid program to provide an aide at home. You have a much better alternative: to open a pooled trust account with a non-profit trust company. The pooled trust will receive your excess income, charge a reasonable fee, and pay your bills with the excess income.

The problem we have seen occurs when the person needing the home care services is no longer capable of entering into legal transactions and cannot set up the pooled trust. In that case the agent under the Power of Attorney can do so if the document specifically gives the agent the authority to create and fund trusts. If the authority has not been given, the next option would be to start a guardianship proceeding to allow for the trust to be set up. This is a costly and time consuming effort.

If your agent does not have the authority specifically stated to create and fund trusts you may want to consider revising your Power of Attorney, a much better alternative: to open a pooled trust account with a non-profit trust company. The pooled trust will receive your excess income, charge a reasonable fee, and pay your bills with the excess income.

The problem we have seen occurs when the person needing the home care services is no longer capable of entering into legal transactions and cannot set up the pooled trust. In that case the agent under the Power of Attorney can do so if the document specifically gives the agent the authority to create and fund trusts. If the authority has not been given, the next option would be to start a guardianship proceeding to allow for the trust to be set up. This is a costly and time consuming effort.

If your agent does not have the authority specifically stated to create and fund trusts you may want to consider revising your Power of Attorney.

Mediation

At a recent networking event I met a woman who is an attorney and licensed social worker. She currently provides mediation services for couples seeking a divorce. She is considering using the benefits of mediation in elder law matters. I think that such a service might be very valuable in matters such as contested guardianships, family issues in estate planning matters, disagreements over medicaid planning strategies, conflicts when 2 agents under a power of attorney, executors under a will or trustees of a trust must act together and cannot agree.