Follow
Share

I went to seminar put on by a large local elder care attorney firm, and they give a talk, get your information, and then call you to see if they can see your loved ones POA. I scanned it over to them, and then they called and said I needed to change the language to include 'gifting " in the POA. I was hoping to get some answers regarding financials about moving my almost 91 yr old mother in my home, and not being hit with that gifting penalty due the needed renovations for her to live here, specifically a bathroom, chairlift, and for her to have her own apartment space. My mother had the current POA drawn up by an attorney she trusts-
I am wondering if some of these firms are just trying to make the $550 to redo POAs, as it seemed like the attorney didn't want to give me my "free" consultation, and wanted to get off the phone quickly,after I said I didn't think my mother would want to sign a new POA agreement, since she is quite stubborn. They had said in the seminar that you could take an hour or two, and go over may things, I was interested in VA benefit information, too. Anyone else encounter these types of firms, and is their really "gifting language " that can help on the possible Medicaid needs dowm the road? My mother does not have a lot of money, so It is definitely on my mind, as to not get in a situation down the road.

This question has been closed for answers. Ask a New Question.
These people sound highly exploitative. I wouldn't touch them with a stick.

Why not contact your mother's trusted attorney and check out with him whether the adaptations to your home needed for your mother to come and live with you could be paid for by her without incurring penalties down the line? An attorney you know to be trustworthy is worth his weight in gold.
Helpful Answer (8)
Report

I don't think there is any "gifting" language at all in my POA, nor in my husband's. Perhaps this refers to allowing the agent to charge for services ...? I don't know, but it seems most likely to be some element they latched on to in order to justify them charging Mom for rewriting the document.

Trust your instincts on this!
Helpful Answer (4)
Report

LadyDi - what was the name of the law firm from Prarie Home Companion?
.....Duewe, Cheatum & Howe!

But back to your ?....you mention that moms moving to your house has/will placed costs. Like for renovations, lift, etc. and you are thinking that mom could gift you $ to offset all those costs. That's correct, right?

If so, Realize that if this is gifting. If mom should need a higher level of care and she moves into a facility and applies for Medicaid, the state can require mom (aka you as her DPOA) to provide 5 years of all financials. Done today that means going back to 2012. And that $ given to you for work done on your house will be viewed as gifting. It's your property that is getting renovated, not moms. There is planning that can be done that is within Medicaid rules though.

Mom can instead do 2 things:
a personal services contract AND rental agreement.
Both drawn up by an atty & not by Duewe, Cheatum & Howe. I'd suggest that if moms old atty is not a NAELA level elder law atty that you ask old atty for a referral to a naela in your state. All needs to be done above board with taxes paid, etc.

If mom has or is about to sell her home AND also could get VAs Aid & Attendance, well, mom is going to have a big bigly puddle of a$$et$. So getting updated legal done is a good idea, as is getting whatever contracts & updated legal done so that all are Medicaid compliant. Really whatever needs to be done so that if mom should need a facility later on, and has run through her $, that she can qualify for Medicaid with no gifting transfer penalties.

Things change; caregivers run out of ability; mom could live another decade as those who are in their 90's are outside of any health or aging chart. Unless mom had you as a very very late in life baby, you are in your 70's. You don't want a problem 4 years from now as to improper transfer of moms $ and mom needs to be in a NH. Mom has the $ to get solid experienced legal done & that means NAELA.
Helpful Answer (3)
Report

I think I will call her original attorney. What concerns me is that this firm is giving about one seminar per week, and about 50 people show up at each, and It seems they are baiting people with this free consultation. That's over 2500 people in this medium sized city in the Midwest. They have the right to market their business anyway they want, but if you aren't going to make them big $$, they just quickly get you off the phone. I really wanted another opinion!
Helpful Answer (2)
Report

I don't see where changing the POA will help you at this point. You have already done the capital improvements with her money? Medicaid will hit you with a gift penalty if these items fall within five years of her applying for Medicaid.
Helpful Answer (2)
Report

My dad had to do a new POA to include the ability for the POA to gift and establish trusts. It is legally sound advice if you have any money to preserve. My only advice is to be sure you are dealing with an attorney who practices with FULL disclosure to all governmental agencies. If they do not, you (and the attorney) will be acting illegally/maliciously and as well as placing yourself and your benefactors at huge risk of a financial and legal nightmare.
Helpful Answer (2)
Report

I expect that the idea is to make sure every dollar spent can comply with any future medicaid application, so that no expenses are disqualified as a "gift". I don't know whether this firm is twisting the facts or not, but that is something every American needs to know about, and apparently not every attorney, no matter how trustworthy, is well versed in medicaid rules.
Helpful Answer (1)
Report

I read this on an asset protection website in case anyone else is wondering about attorneys adding this to the POA. :Not all Powers of Attorney are created equal. Many Powers of Attorney do not permit the Agent to do planning to protect a person’s assets from being wasted paying for nursing home care cost. They do not contain the necessary language to permit the Agent to do gifting. The ability of an Agent to gift is barred by the law in many states. The document must specifically authorize gifting in order for an Agent to be able to gift. This law exists for the protection of the Principal. However, in a family setting, where a trusted loved one has been selected by the Principal, it generally is appropriate to include gifting language in the document. Language that says my Agent can do anything and everything is not sufficient under the law to allow the Agent to make gifts. In fact, if the Agent makes gift, the law would require the Agent to return the money to the Principal. The reason for this is the Agent exceeded his authority. An Agent who exceeds his authority can get into serious trouble with the law.
A better solution may be to authorize the Agent to make gifts. There may be a number of times in which gifting, by the Agent of an incompetent Principal, could be very important. One might be planning that happens after incompetency where planning is being done through gifting to reduce taxes. Another may be reducing the Principal’s assets through gifting in order to get the Principal qualified to get Government benefits to pay for the Principal’s nursing home care costs.
Thus, I would recommend that you review your existing Power of Attorney. See if it contains express language authorizing the Agent to make gifts. See if any restrictions have been placed on the Agent’s ability to make gifts. Laws can be different from state to state. You need to know what your state law provides and what the requirements are to have a valid Power of Attorney in your state. Consult with Attorney T. P. Crawford and tell him that you want your Agent to be able to make gifts to protect your assets from being sold to pay for nursing home care costs.
Helpful Answer (1)
Report

Also, What is "changing the gifting language", does anyone know what that means?
Helpful Answer (0)
Report

Ladydi, judging by the language and the tenor of this website, it isn't one I should consider 100% respectable.

I'd find a better attorney to consult T.P. Crawford, I think.
Helpful Answer (0)
Report

See All Answers
This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter