New Rules for the Important Durable Power of Attorney Document and How They Protect You

Add comment July 29th, 2009

A Durable Power of Attorney is an essential and critical document for Elder Law planning. A common mistake made by many elderly individuals is to assume that a standard Power of Attorney they obtained in a stationary store or downloaded from the Internet will suffice for Medicaid eligibility planning purposes. These documents are not powerful enough to cover the broad spectrum of scenarios that can and often do arise.

New York State has enacted new rules and requirements that apply to all Durable Power of Attorney documents, to become effective on September 1, 2009. The net effect of this legislation is to provide you with more protection. It’s intended to reduce the incidence of potential abuse of rights and privileges you convey to your appointed agent.

Major changes to existing law include the following:

• Agents are required to acknowledge their responsibilities by signing and dating the document. The signature must be notarized.
• If you give your agent the power to make gifts from your assets, special language and a rider must be added to your Durable Power of Attorney. The rider must be validated by two witnesses.
• The authority to create certain types of Trust structures now has to be provided for in an additional rider to the Durable Power of Attorney.
• The ability to set up joint bank accounts, designate insurance beneficiaries, or to change beneficiaries on retirement plans must be specifically authorized with additional riders.
• The new law makes specific provisions for you to appoint an outside party to monitor the activity or your chosen agent. For example, you can require the agent to submit a record of payment and receipts for review to the party monitoring him or her.
• There is a “statutory” form of the Durable Power of Attorney that includes language specified in the legislation. Third parties who are presented with the statutory form of the document must accept it.

An experienced Elder Law firm is your best source for help with drafting the new document specifically targeted to your unique needs. To learn more about effective use of the Durable Power of Attorney, please see Strategy # 17 in Lamson & Cutner’s Special Report, 25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs here.

Get Medicaid if You’re Unemployed

Add comment July 28th, 2009

Recent articles in The New York Times and The Washington Post have discussed provisions in President Obama’s economic stimulus program to provide Medicaid eligibility for those who’ve lost their jobs and can’t afford health care coverage. Details are still being hammered out. According to the articles, the new legislation will allow states to offer Medicaid benefits temporarily to unemployed residents, with the Federal government footing the entire bill.

Individuals who are hit hardest by job and insurance loss are those suffering from chronic illness and disability. In a significant number of instances, the absence of affordable insurance results in their abandoning pursuit of consistent medical care. Regular doctor visits and refilling of needed prescriptions falls by the wayside. Other pay for care out of their own pockets, depleting whatever savings and other financial assets they’ve accumulated.

Fortunately, there is a silver lining in the cloud of unaffordable insurance for many people and their families, who often suffer under the financial strain. With effective Elder Law planning, you can achieve eligibility for Medicaid benefits right now. It may be unnecessary to wait for the government programs that are to eventually be made available thorough the economic stimulus legislation.

Additionally, if you are currently well and facing the prospect of expensive insurance costs due to being laid off, it’s an excellent time to get the facts and take advantage of advance Medicaid planning. Many workers who have investments, homes and other assets believe that because of their financial profile they cannot qualify for Medicaid. Yet it is possible to qualify, and, by taking steps now, you gain the benefit of protecting a larger portion of your assets than would otherwise be possible.

While each person’s situation is unique, you can get a comprehensive overview of Medicaid planning on Lamson & Cutner’s special situation-specific website for applicants at www.lamson-cutner.com. Once you’re there, be sure to read the firm’s new report on successfully applying for Medicaid, 25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs.

Links to Articles:

The New York Times

The Washington Post