Many attorneys never know just how their practices impact their clients' lives. Because Alabama Family Trust has long-term relationships with representatives of clients with special needs trusts that many of you create, we can share some insights specifically for attorneys whether you are a plaintiff attorney, elder law or estate planning attorney, guardian ad litem, guardian, or conservator.
Dana Zimbleman of Colorado served as representative for the special needs trust managed by Alabama Family Trust to care for her mother, Iva Posey, here in Alabama for years. Dana graciously agreed to share her experience with others who have elderly loved ones.
You can share the link to the full story with your clients.
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"My family's situation is probably a cautionary tale to others about what happens if you are middle class and do not plan adequately for the possibility that you may end up in custodial care during your final years."
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Insight #1: Prepare your clients and their families in advance
Dana Zimbleman shared that her “mother’s decline was a long, gradual process, but the critical crisis came very rapidly.” Attorneys with disabled or elderly clients should discuss the possibilities of both long and fast declines in health and make sure that they have the legal documents and the estate plans in place that they need.
Dana’s 20/20 hindsight: “Our parents should have planned more carefully. They had wills and had arranged their funerals, which was a great relief to us. Yet they tried to hang on to their assets for too long without ensuring their final wishes could be granted. They did not mean to leave my sister and me without an inheritance. On the other hand, they were too proud to relinquish control to us.”
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Insight #2: Know the benefits of special needs trusts
Dana Zimbleman’s saga is a great reference to share with your clients and their families to reinforce the benefits of a special needs trust complemented by Medicaid. She referenced these items that Medicaid would NOT pay for:
- Private room in skilled nursing facility
- Clothes
- iPhone, cable TV
- Beauty parlor services
- Professional advice for Dana and her sister to handle her mother’s affairs well
- Care management services
- Travel for the two sisters to take care of their mother
- [and don’t forget pre-need funeral and burial arrangements]
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“As bad as our situation was, I am so happy that I got good legal advice and was able to use Mother’s money for her rather than impoverish her completely to receive basic Medicaid-level nursing home care.”
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Insight #3: “Medicaid rules were confusing, hard to follow, and exasperating!”
Even though a special needs trust can be set up and managed without an attorney or management services, it’s much easier for representatives to depend on someone with experience. There’s no “do over” with Medicaid. Dana Zimbleman took full advantage of Alabama Family Trust’s expertise in interpreting Medicaid’s rules for what the first-party special needs trust could fund even as she had to private-pay for care until her mother's trust was in place.
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“If I had followed Medicaid’s spend-down requirement, Mother would have received no extra benefits at the nursing home even though she had actually invested in her care. At those [nursing home] prices, I would have depleted my parents’ entire life savings in about three years.”
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Insight #4: Strongly encourage your clients to talk to their families about their long-term care and financial situations.
Help your clients work through the issues of autonomy, control, and fear of being suckered.
“Children should find a diplomatic way to broach these matters with their aging parents. It’s better to hire a legal professional who understands the laws and can help families make use of their own assets through trusts like those Alabama Family Trust offers; the money for the attorney is well spent in the long run.”
“On the bright side, Mother was able to live with more comfort and dignity than she would have if I had not learned of the trust program at Alabama Family Trust. “
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