Don’t Miss the Opportunity to Request a Medicare Expedited Appeal

The problem facing many elderly and disabled individuals is how to maintain medically-necessary skilled nursing facility care when daily care is reduced to intermittent care.  Without this daily care, many individuals cannot reach the level of independence they once enjoyed, and Medicare will no longer pay for room and board. 

One solution is to exercise the right to a Medicare expedited appeal and obtain a physician recommendation for continued daily care.    While easier said than done, health and independence are worth fighting for.  To succeed, it’s important to know your rights, what to watch for, and how to respond.

First of all, before a reduction in care can take effect, the skilled nursing facility is required to provide a standard notice at least two days prior to the end of care.  This notice will tell you the date coverage will end, the date the beneficiary’s financial liability begins, and the phone number to contact for an expedited appeal to overturn this decision.

The catch is you have until noon the day after receipt of this notice to appeal the reduction in care or you lose the right to an appeal.  The burden is on you to watch for this notice and respond immediately.  Remember, the facility must give you the notice, but they don’t have to draw your attention to it.  All too often, these notices are quietly left at the beneficiary’s bedside or slipped into a pile of paperwork.  If you don’t know your rights and watch for the notice, you can easily miss the appeals window.

While the appeals process is time consuming and tedious, the ultimate goal of rehabilitation and independent living is worth the effort.  Our hope is that your awareness, diligence and perseverance will prevail, and we are here to lend support anytime you need it.

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Moschella & Winston has specialized in legal planning and protection for individuals and families for over 30 years, and our attorneys are experts in elder, disability and special needs law.   Please contact us at info@moschellawinston.com or (617) 776-3300.

The 2010 Estate Tax Law – How Will It Impact You?

2010 brings with it a mixed goody-bag from our friends in the federal government.  This year, we’ll enjoy:

• A one-year repeal of the federal estate tax
• A drop in the gift tax rate to 35%
• A one-year repeal of the federal generation skipping transfer (GST) tax

Before you celebrate, take a look at the bigger picture, and ask what these unprecedented changes in tax law mean for you – now and in the future.  If your assets total more than $1 million, it is important to review your estate planning documents to ensure they are up to date with the new laws to avoid unnecessary risks and taxes.

Several factors must be considered.  First, 2010 brings a new system called “carry over basis” (COB), which means that many who would have paid no tax will now be paying capital gains tax when they sell inherited assets.  Picture yourself searching for records to show what your parents or grandparents paid for their stocks, their gold, or their home.  And be prepared for capital gains tax rates to increase dramatically over the coming years.

Second, the 2010 repeal was unexpected and many wills and trusts should be amended to take advantage of up to $4.3 million in “free additional basis” for inherited assets.  The 2010 law provides $1.3 million in basis adjustment for all estates and potentially another $3 million of basis adjustment for a married person, but only with the right will or trust provisions.

Third, and perhaps most importantly, many tax sensitive wills and trusts use words and formulas based upon the federal estate and GST tax systems.  Those tax systems do not exist in 2010, which puts the taxes and the assets at risk.

The tax law of 2010 will be nothing more than a mirage if Congress does not act further.  The federal estate tax law and the GST come back with a vengeance in 2011 with higher tax rates (maybe as high as 49%) and lower exemption amounts ($1 million).

The bottom line is review your estate plan in light of 2010’s new developments and collect ownership and tax basis information for every asset you own.

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Moschella & Winston has specialized in legal planning and protection for individuals and families for over 30 years, and our attorneys are experts in elder, disability and special needs law.   Please contact us at info@moschellawinston.com or (617) 776-3300.

One Scary Statistic You Can Easily Avoid

Did you know that as many as 70 percent of Americans die without a will¹? If that statistic applies to you and doesn’t scare you, then you haven’t thought about what this means for your loved ones. If you die “intestate,” meaning without a will, you leave it up to the State and the courts to decide how your property and financial assets will be distributed. At that point it will be too late to express your wishes and more importantly, protect your loved ones. You also open the door for a much more complex and lengthy court process, especially if family members disagree with how your assets are being divided. All of this can be avoided with a few essential estate planning documents. 

A common misconception exists that estate planning is only for the wealthy, but this is not true. Every adult, regardless of life circumstances or age, should have an estate plan to protect themselves and their family. Estate plans help you manage and preserve your assets while you are alive so that you can control their distribution after you’re gone, and they generally include: 

• a will – a document in which a person dictates who will receive their assets and how their assets will be managed and distributed from their estate after their death 

•  power of attorney – an instrument authorizing another to act on someone’s behalf in a legal, financial, and/or business matter. The power of attorney terminates upon death. 

• healthcare proxy – a health care proxy allows you to appoint someone you trust, for example, a family member or close friend, to make health care decisions for you, if you lack the capacity to make health care decisions for yourself. The health care proxy terminates upon death. 

• medical directive – a legal document that allows you to set out written wishes for your medical care, name a person to make sure those wishes are carried out, or both. Often referred to as an advanced directive or living will. The medical directive terminates upon death. 

• a trust – a legal relationship in which one or more persons (trustees) holds legal title to property and manages it for the benefit of one or more persons (beneficiaries) 

Estate planning requires a thorough understanding of trust, probate, and tax law, as well as a genuine understanding of your particular circumstances and planning goals. Therefore, you want to utilize an attorney who specializes in this area of law. 

Please see our firm website at www.moschellawinston.com for more details regarding estate planning.  

1. Statistic provided by the American Bar Association, 2007

 

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Moschella & Winston has specialized in legal planning and protection for individuals and families for over 30 years, and our attorneys are experts in elder, disability and special needs law.   Please contact us at info@moschellawinston.com or (617) 776-3300.