Gifting to Qualify for MediCal--Unfair For Seniors?

As an attorney, I often see colleagues' promotional materials, advertising that there are lawful ways for elders to gift their estate to other family members in order to qualify for MediCal -- what we call "Medicaid" in California. Other states use the term "Medicaid" or have created their own term.

When I first read one of these elder attorney's pamphlets, I thought whom is he representing? Does the elder who is being advised or agreeing to do this know what a MediCal/Medicaid facility looks like? The quality of care they are going to receive compared to what they may be used to in what I call "real life" -- the time before they enter Assisted Living or a Skilled Nursing Facility (SNF) -- can be much less than their current standard of living.

MediCal and Medicaid facilities may do the best they can with their limited resources, but the resources ARE limited, and it is important that any elder understand what it means if they give away their estate in order to qualify for MediCal/Medicaid. THEY NEED TO VISIT THE TYPE OF FACILITY THEY MAY HAVE TO LIVE OUT THEIR LIFE IN BEFORE THEY AGREE TO GIVE THEIR ASSETS AWAY. That's what the legal community refers to as "informed consent", but I wonder how often that happens in these types of situations.

Many attorneys get around what appears to be a major ethical dilemma by representing the children and having a written waiver from the parent that the parent should seek their own counsel and that the attorney is not representing the parent. This waiver may or may not be effective depending on the specific circumstances and the state.

There may be those unselfish parents who are willing to give it all away for the sake of their children and risk living in a bad facility for the rest of their lives if necessary. My concern is most parents don't know exactly what they are doing when they seek to give away their assets to qualify for MediCal/Medicaid.

It sounds like a great come on, but go see the fine print! If you are an elder planning on working with an attorney and your family to qualify for MediCal/Medicaid, please educate yourself, seek your own personal legal counsel, and research the potential quality of life you will face if you have to rely solely on MediCal/Medicaid and not on your own personal funds.

Legally protecting your assets and saving tax dollars is your right, but please make sure it is what is best for YOU!

Jane Allison
http://yourelderlawadvocate.com/
http://twitter.com/janeallison