“Typical” Client Scenarios

Married Couple

Ralph and Alice have a home valued at $700,000, IRA’s worth $150,000, savings of $300,000 and combined incomes of $2,750/month. Ralph has dementia and needs placement in a nursing home. The couple have been told that they have too much in savings and need to “spend down” before Ralph can qualify for Medi-Cal. However, there may be planning options for Alice that will avoid this need to spend down and that will qualify Ralph now for Medi-Cal benefits and, at the same time, allow Alice to keep all of their savings and other assets, as well as their combined monthly incomes. Our firm may be able to help.

Single Individual

Dick is a single man with a home and savings of $200,000. He has good mental capacity but is physically infirm. His doctors have advised his children that he may soon need nursing home care. Medi-Cal has advised that Dick’s assets are over the limit and that he does not qualify. However, by implementing certain planning strategies, Dick may be able to accelerate his eligibility, retain his home and savings, avoid “pay back” to Medi-Cal upon his death and leave something for his devoted children. Our firm may be able to help.

Recovery Avoidance

Sally has a home and only modest income. She bought her home in the late 1940s for $5,000 and it is now worth $650,000. Her greatest fear is that the state may take her home if she needs to go into a nursing home. She has a loving daughter, Mary, to whom she wishes to leave her home “free and clear.” Our firm may be able to help Sally protect her home from Medi-Cal claims so that she can leave it free and clear to Mary, avoid capital gain tax consequences upon transfer, as well as avoid probate.

Estate Planning

John and Judy are in their mid 40s and have a substantial estate worth $3 million. It includes John’s dental practice. They are healthy and desire to provide, when they die, for the needs of the survivor and for the later smooth transition of their wealth to their children. Our firm may be able to help them with Estate Planning, including the creation of a Living Trust with special features to provide for each other, for the orderly management of John’s dental practice if he predeceases Judy or becomes incapacitated, for the education of their children, and for avoidance of Federal Estate Taxes. Their plan may include Durable Powers of Attorney, Advance Health Care Directives, a Revocable “Living” Trust, “Pourover” Wills, a special “Dental Trust” for John’s dental practice, a Buy-Sell Agreement for the dental practice, and possibly, a special Life Insurance Trust.