Exploring Ancillary Probate with a Probate Attorney

Seniors who require assistance with daily activities and qualify for Medicaid Long-Term Services and Supports often end up on waiting lists to receive home-based care or in community settings. This forces many to live in institutional facilities, isolating them from their communities and incurring significant costs.Benefits of Aging in Place and HCBS ActHowever, the Home and Community-Based Services (HCBS) Access Act, introduced by U.S. Sen. Bob Casey and U.S. Rep. Debbie Dingell, aims to change this by providing better funding and resources for seniors seeking care at home or in their communities. Not only does aging in place offer emotional and physical benefits, but it also saves money.Key Provisions of HCBS Access ActThe HCBS Access Act seeks to provide enhanced Medicaid funding, grant funding for states developing home care capacity, resources to ensure professional caregivers have stable jobs and wages, training for family caregivers, and improved quality evaluation. With the support of sixteen U.S. representatives and advocacy organizations for older adults, this legislation could make a significant change in bridging the gap between institutional and community-based care.Importance of Consulting with an Elder Law AttorneyNavigating Medicaids complex waiver programs can be daunting. Thats why consulting with an elder law attorney, who is well-versed in the subject, can help ease the process. The proposed Better Care Better Jobs Act is looking to provide additional funding to home care workers while also creating new job opportunities in the field. As the demand for long-term care continues to rise alongside life expectancy, this will be a crucial area of focus in the coming years.Investing in Home-Based Care for SeniorsBy investing in home-based care, not only can we support seniors independence and autonomy, but we can also create better job opportunities and support for family caregivers.Advocating for Our SeniorsThe HCBS Access Act and Better Care Better Jobs Act are steps in the right direction and can help improve the lives of senior citizens who need assistance. With adequate funding, training, and resources in place, we can ensure that our seniors have the care they deserve. It is up to us to make sure these initiatives become a reality and that seniors receive the quality care they are entitled toat home or in their communities. We must continue to advocate for our seniors and ensure their needs are met. Many of them have sacrificed for us, and it is time we do the same for them.

New Rental Assistance Rule May Open Benefits to More SeniorsThe Social Security Administration (SSA) has published a final rule simplifying and expanding its rental subsidy program for Supplemental Security Income (SSI).Effective September 30, 2024, the new rule is likely to allow more people to qualify for SSI. In addition, some current SSI recipients may see an increase in their monthly benefit amount as a result. The rule change is part of a broader agency effort to streamline certain aspects of the SSI program.SSI applicants and recipients may want to talk to an elder law lawyer about the new rule if they have questions about how it affects them.How Do You Qualify for SSI?SSI is a federal public benefits program that provides a modest monthly benefit to qualifying recipients. It serves older adults across the United States who meet strict income and resource limits. People with disabilities who have limited income and resources also may qualify. In most states, to be eligible for SSI, an individual must have less than $2,000 to their name.SSI Rental Assistance ExplainedIncome affects more than whether an individual is eligible for SSI benefits. It also has an impact on the SSI recipients benefit amount.The SSAs definition of income includes not only earned income from a job and unearned income such as gifted cash, but also what SSA calls items received in-kind, including shelter given to an individual or that someone else pays for.A rental subsidy can result in a lower SSI payment for current recipients. It may also disqualify someone from receiving SSI because their income is too high.However, SSI is now changing how it calculates the rental subsidy amount. The new rule will expand an exception that previously only applied in seven states but starting in September 2024 will apply nationwide.How Rental Subsidy Is Calculated The Current RuleIf an individual pays a monthly required rent charge that equals or exceeds the current market rental value (CMRV) in their area, a business arrangement exists under SSA rules. This means that the SSA does not see the SSI applicant or recipient as receiving rental assistance.SSA regulations consider a person to be receiving a rental subsidy a type of unearned income if they are paying a monthly rent amount for a property that is less than the CMRV where they live. This commonly occurs when somebody is living with a family member who charges them less for rent than what they would pay on the open market.For example, consider an SSI recipient who lives with their sibling, paying a monthly rental rate of $400. If the CMRV in their area is $800, the amount of rental assistance would be $400.However, the SSA imposes a regulatory cap, called a Presumed Maximum Value (PMV), on the rental subsidy amount that can be assessed; that amount is $334.33 for 2024. The SSA also has an unearned income exclusion of $20 per month.Using the example above, imagine a landlord accepting $400 per month instead of the CMRV of $800. The amount that the SSA would count as rental assistance would be $314.33 ($334.33 PMV minus the $20 general income exclusion amount.Assuming a maximum monthly SSI payment of $943 in 2024, and assuming there is no other countable income, the recipients benefit amount would be reduced to $628.67 ($943 minus $314.44).ExceptionFollowing court cases that challenged the SSAs rental subsidy rule, exceptions were provided in seven states Texas, Connecticut, New York, Vermont, Illinois, Indiana, and Wisconsin.In these states, a business arrangement still exists. However, the rental subsidy does not count as income if the monthly rental rate equals or exceeds the PMV, instead of the CMRV.Apply this exception to the example above: An SSI recipient in Connecticut pays $400 per month instead of the CMRV of $800 per month. They would not have their rental subsidy count as income because the $400 payment is more than the $334.44 PMV for 2024.The SSA notes that in the seven excepted states, application of the rental subsidy exception generally results in a higher SSI payment amount.New Rule Applies SSI Rental Subsidy Exception NationwideThe SSA announced in April 2024 that the new rule would make the state-specific rental subsidy exception national policy for SSI applicants and recipients.According to the SSA, the policy change will increase the benefit amount for some recipients and allow more people to qualify for SSI payments. However, it will not affect how much SSA pays per month (a maximum of $943 in 2024).Even with this exception, though, some applicants could see their monthly benefit amount reduced; others may not qualify. The actual formula that the SSA uses is complicated and includes the number of household members, as well as other sources of income.The rental subsidy rule change is the latest SSA effort to remove barriers to accessing SSI payments. Also in the fall of 2024, the agency will no longer use food an applicant or recipient receives from friends, family, and community support networks as part of its in-kind support and maintenance calculations. And in April, SSA published a rule changing how it factors support from other public assistance programs, such as SNAP, when determining beneficiary payments.More than 7 million individuals received federal SSI benefits in January 2023, with payments averaging $654 per month. During calendar year 2022, 172,000 individuals applied for SSI benefits based on age, while 1.23 million applied based on blindness or disability. Approximately 522,000 applicants received SSI benefits in 2022, a decrease of 1 percent compared to 2021.Understanding Social Security Benefits Can Be Difficult. Ashley Day Law Can Help.While the new SSI rule may be advantageous for many low-income, older Americans, terms like PMV, CMRV, and in-kind support are not necessarily intuitive. They may add to the confusion around an already long and challenging SSI benefits process. To make sure the value of your rental subsidy is accurately determined, and that you receive the SSI benefits youre entitled to, get in touch with Ashley Day at 251-277-3377.

Are you concerned about going broke in a nursing home?  If your parent or spouse is in a skilled nursing facility or will be soon, you should know about Medicaid Compliant Annuities.  According to the Pennsylvania Department of Human Services, the average cost of a skilled nursing facility is approaching $13,000 per month.Obviously, most families have trouble paying this bill.  For many, the only other payment source is Medicaid, which requires you to essentially go broke prior to eligibility. This is the fundamental problem with the way we provide care to our seniors.  Nursing homes provide a valuable service, but unfortunately the broken government rulebook requires you to spend the majority of your money before they will help pay.  What a shame making seniors go broke because of dementia or some other ailment.Fortunately for you, the state is bound by their own rules and those rules provide you with opportunities, if you know where to find them. This is where a Medicaid Compliant Annuity can help.  A Medicaid Compliant Annuity converts money that Medicaid has to count as an available resources into an income stream that a healthy spouse can keep.As an example, in a married case with Dad in a nursing home, Mom is only allowed to keep half of the available savings, subject to a maximum of about $154,000.  So, if the family has a total of $200,000 in countable savings, Mom will only be able to keep $100,000 and risks losing the other $100,000. Rather than losing $100,000, Mom may decide to work with a Certified Elder Law Attorney to explore her options.  One option she may have is to purchase a Medicaid Compliant Annuity. This annuity converts the extra $100,000 into an income stream which she is allowed to keep.  Mom gets to keep the money and Dads bill is paid by Medicaid!  This can be a great solution for you, if you have a sick family member. ***Please do not try this at home. Medicaid is complicated and only a qualified Elder Law Attorney can determine if this strategy is right for you***