Elder Law
What is Elder Law?
Elder law is a specialized area of law focused on the unique legal needs of older adults and their families. At Ellis Law, LLC we focus on the specialized areas of Elder Law involving Incapacity Planning and Long-Term Care Planning, Medicaid Planning, Special Needs Trusts, and ABLE Accounts.
Long-term Care Planning & Medicaid
While you may not currently need long-term care, it is important to have a plan for your estate, finances, and future health care needs if you ever do need it. Long-term care in all settings is expensive, and many are surprised to learn that Medicare does not cover long-term care.
Medicaid, a joint state and federal program, is one way to pay for long-term care. The Medicaid rules are complex. The federal rules and rules in Washington have strict requirements about income, assets and transfers in order to qualify and stay on the program. We can help you plan early, avoid costly mistakes and identify ways to preserve assets while qualifying for benefits.
Incapacity Planning
Incapacity Planning focuses on what happens when you are unable to act for yourself. It is the process of making legal and financial arrangements in case you become unable to make decisions or manage your affairs due to illness, injury, or cognitive decline. Planning ahead in the event of incapacity can help you avoid the need for a court-appointed guardian or conservator, protect your finances and property, ensure your medical wishes are honored, and reduce stress and conflict for your loved ones. We work with individuals with dementias, Parkinson’s or other cognitive impairments and those who want to plan for the future.
Special Needs Trusts
Special Needs Trusts can be established to improve the quality of life for individuals without disqualifying them from receiving public benefits. These trusts are designed to help people with disabilities pay for items and services that government benefits do not cover.
There are two types of Special Needs Trusts that can be set up: A First-Party Special Needs Trust (also known as D4A Trust or Self-Settled Special Needs Trust) is an irrevocable trust that is established with the assets of the individual with a disability. The individual with the disability may have received funds through an inheritance, lottery winnings, or proceeds from a lawsuit or other money that they had at the time of their disability. First-Party Special Needs Trusts have a Medicaid pay-back and the individual must be disabled and under the age of 65 at the time the First-Party Special Needs Trust is created.
Third-Party Special Needs Trusts are the second type of Special Needs Trusts. They are created by someone other than the disabled person, such as parents, grandparents, other relatives, or friends. A key difference from the First-Party Special Needs Trust is that Third-Party Special Needs Trusts do not have a Medicaid pay-back provision requirement. As there is no Medicaid pay-back provision, the creator of the trust can choose where the money will go after the beneficiary dies, making the Third-Party Special Needs Trust a preferable option for many.
Both First-Party and Third-Party Special Needs Trusts can be established as pooled trusts, which are managed by a non-profit organization. Separate accounts are maintained for each beneficiary, but assets are pooled for investment and management purposes. Accounts are established solely for the benefit of the disabled individual and the account in the trust is established through the actions of the individual, a parent, grandparent, a legal guardian or court.
ABLE Accounts
An ABLE (Achieving Better Life Experience) Account is a type of tax-advantaged account can be used to save funds for disability-related expenses for an individual with a disability. To qualify, the ABLE Account beneficiary must be blind or disabled by a condition which occurred before their 26th birthday. ABLE Accounts and special needs trusts can be used together.