Veterans to Receive "Combat-Injured Veterans Tax Fairness Act" Letters

In 2016, Congress passed a law known as the Combat-Injured Veterans Tax Fairness Act. The law entitles more than 133,000 injured veterans to tax refunds as far back as 1991. The objective of the law is to ensure that veterans who suffer service-ending combat-related injuries aren’t taxed on the severance payment they receive from Department of Defense (DOD).

The DOD is just beginning to send letters to the eligible veterans with information explaining how to claim the tax refunds. The letters will provide an explanation of a simplified method for claiming the refund, and explain the time limits for making the claims.

The amount of time for claiming the tax refunds is limited.  Veterans who have claims for refunds can amend their tax returns claiming the refund in the normal limitations period for filing amended tax returns, or three years.  Obviously, some of these amended returns are already time barred.  The law gives veterans an alternative time frame, or one year from the date of the letter from DOD. In other words, veterans can make a claim for the refund for one year from the date of their letter from the DOD, or within three years of the original filing deadline for the return, whichever expires later.

There are a couple of ways a veteran can claim the refund.  A veteran can either send in a claim based on the actual amount of the disability severance payment received by filling out Form 1040X, but a veteran must carefully follow the instructions for making the claim.  Alternately, a veteran can opt for a simplified method. The veteran can simply choose to claim a standard refund amount based on the calendar year in which the veteran received the severance payment. The veteran then writes “Disability Severance Payment” on line 15 of Form 1040X and enters on lines 15 and 22 the standard refund amount listed below that applies:

• $1,750 for tax years 1991 – 2005
• $2,400 for tax years 2006 – 2010
• $3,200 for tax years 2011 – 2016

For more information talk with your tax attorney or go here. 

Ohio Guardian's Sale of Medicaid Recipient's House Approved as being In Her Best Interest

A guardian can sell a Medicaid recipient's house even though the mortgage loan was in default, because the mortgage company had not foreclosed on the property and it was in the recipient's best interest to sell the property and retain her Medicaid benefits.  That is the decision of an Ohio Court of Appeals in the case of  Gasper v. Adkins (Ohio Ct. App., 10thDist., No. 17AP-294, Sept. 27, 2018).

Christopher Gasper was appointed guardian of Diantha Adkins, who was in a nursing home and receiving Medicaid benefits. Mr. Gasper petitioned the court to sell Ms. Adkins' house. The company that held the mortgage objected to the sale, claiming the mortgage loan was in default.  The company holding the mortgage argued that the guardian could not sell the property, but the guardian could only sell the ward's right to redeem the property from foreclosure.  The company that held the mortgage had not filed for foreclosure, though, so the company's argument would mean that the ward would have to continue to hold ownership of the property, which the guardian argued threatened the ward's Medicaid benefits. 

The court rejected the mortgage company's argument, found that the sale of the property was in the best interest of Ms. Adkins and authorized Mr. Gasper to execute a deed in lieu of foreclosure. The mortgage company appealed, arguing that the court couldn't authorize the sale of the property free and clear of the mortgage lien without the mortgage company's consent.

The Ohio Court of Appeals, 10th District, affirmed, ruling that the guardian was entitled to sell the property. According to the court, because the mortgage company had not foreclosed on the property, Ms. Adkins was not "divested of legal ownership" at the time Mr. Gasper sought the authority to sell her real estate. The court also held that it was in Ms. Gasper's best interest to sell the property in order to not jeopardize her Medicaid benefits.

Most Affluent Seniors Want to Age In Place Including Relying on and Compensating Family For Long Term Care

McKnight's Long Term Care News, reports the results of a new survey of wealthy seniors which suggests that many of nursing homes’ potential residents would prefer to receive long-term care at home, and would be willing to pay their own family members for it.

The Harris Poll, conducted on behalf of the Nationwide Retirement Institute, conducted a survey that gathered responses of more than 1,000 U.S. adults, age 50 or older, with an annual household income of $150,000 or more.  The survey found that about seventy-one percent (71%) of seniors would prefer to rely on a family member for long-term care. More, seventy percent (70%) of those surveyed would not expect that help, unless they were able to pay relatives.

Only one percent (1%) stated that they preferred to receive skilled care in a nursing home. The majority of respondents (56%) said that they “would rather die” than live in a nursing home, and just less than half of the respondents (47%) said they worry about becoming a burden to their families.  Reasons for those worries included loss of control of their lives (68%), detachment from the community (32%) and seeing family less often (30%).

The overwhelming majority of respondents (77%) said, if needed, they’d most prefer to receive long-term care at home.  

More details from the seventh annual survey can be found on Nationwide’s website here.

Alzheimer's Association Launches Program to Connect Dementia Care Experts with Assisted Living Communities

According to an Alzheimer's Association press release, the Association is launching an innovative pilot program aimed at enhancing the care people living with Alzheimer’s and other forms of dementia receive in assisted living facilities. Modeled after Project ECHO® (Extension for Community Healthcare Outcomes) – a “telementoring” program that uses videoconferencing technology to share information – the new pilot will connect dementia care experts with leaders from assisted living communities across the country. The six-month program will combine bi-weekly presentations with interactive case studies to help enhance person-centered, high quality dementia care in community-based settings.  Go here to see a video describing how Project Echo® works. 

“The Alzheimer’s Association is excited about leveraging the ECHO model™,” said Morgan Daven, senior director, health systems, Alzheimer’s Association. “It allows us to create an ongoing dialogue between dementia care experts and those on the front lines providing care to individuals living with Alzheimer’s and other dementias. Project ECHO provides not only an opportunity for dementia experts to share their insights, but also a forum to explore real case studies from the field to better address the common challenges facing communities providing dementia care.”

Project ECHO, developed by the University of New Mexico in 2003, was first used to train primary care clinicians in rural communities to treat patients with hepatitis C. Subsequent studies found that hepatitis C care provided by Project ECHO trained community providers resulted in outcomes equal to those provided by specialists at a university. Since then, the model has been used to educate providers and improve care for other complex conditions, including: HIV, tuberculosis, chronic pain, endocrinology and behavioral health disorders. This will be one of the first models used to improve quality dementia care in long-term and community-based settings.

“The ECHO model has a proven track record of success,” Daven said.  “It will enable us to disseminate the latest and greatest research and recommendations for dementia care to communities in a timely and efficient manner. Communities will be able to use this information to improve care for people living with dementia. Ultimately, we would like to expand this pilot program across the country.

The six-month pilot program will consist of 12 sixty-minute sessions. Designed specifically for leaders and staff from assisted living communities, the sessions will examine content areas put forth in the Alzheimer’s Association Dementia Care Practice Recommendations released earlier this year. The recommendations, developed by dementia care experts, emphasize person-centered care and are based on a comprehensive review of current evidence, best practice, and expert opinion. Key topics addressed in the sessions, include: 

• Fundamentals of person-centered dementia care
• Detection and diagnosis for nonphysicians
• Person-centered assessment and care planning
• Co-morbidities and medical management for nonphysicians
• Information, education and support needs of individuals living with dementia and caregivers
• Evidence-based nonpharmacological practices
• Progressive support for activities of daily living
• Building and supporting the workforce
• Supportive and therapeutic environments
• Interventions for transitions in care
• Evaluating person-centered practices

The Alzheimer’s Association is partnering with the New York Academy of Medicine (NYAM) to evaluate the initial pilot. NYAM created the first-ever evaluation toolkit and resource guide for users of the ECHO model in 2016. The evaluation will assess key areas including process, impact and sustainability. The Alzheimer’s Association will use the evaluation to inform and enhance future offerings of the program.

In addition to having ongoing engagement with dementia care leaders, pilot participants will have open access to resources provided during the program and will receive a certificate upon completion. Sixteen assisted-living facilities are participating in the initial pilot, they include: Affinity Living Group (Ahoskie House), Brandywine Living (Pennington), Brightview Senior Living (Canton), Brookdale Senior Living (Westlake, Ohio Clare Bridge Alzheimer’s and Dementia Care Program), The Chelsea at Tinton Falls, Forest Hills of DC/Forest Side Memory Care, Genesis Healthcare (Granite Ledges of Concord), Juniper Communities (Brookline’s Wellspring Memory Care Community), The Kendal Corporation (The Admiral at the Lake), HCR Manor Care (Arden Courts of Winter Springs), Senior Lifestyle (Liberty Heights), Senior Resource Group (Maravilla Santa Barbara), Senior Star (Dublin Assisted Living and Memory Support), Silverado (Kingwood Memory Care Community), St. Paul Elder Services Inc., and Sunrise Senior Living (Brighton Gardens of St. Charles).

The pilot program is offered free of charge to participants. Individual donors Bill and Susan Thomas and Robert and Jill Thomas are funding the assisted living pilot program.  

A companion pilot aimed at health care providers is also being launched. It will focus on resources and information relevant to clinical practice and is aimed at helping primary care clinicians not specialized in dementia care, better diagnose, care and support individuals living with Alzheimer’s and other forms of dementia.

VA Rule Changes to Aid & Attendance Effective 10/18/2018

The Veteran's Administration has published new rules regarding Aid and Attendance eligibility.  These rule changes were long anticipated, but now become effective October 18, 2018, thirty days after publication which occurred on September 18th, 2018.  Applications and transfers prior to that date are governed by the old rules.

THE NEW RULES

Three-Year Look-Back For Asset Transfers: Beginning October 18, 2018, there will be a 3-year look back on asset transfers for less than fair market value. Previously you could transfer assets in one month, and apply for benefits the next month with no look back at all. The 3-year look back has eliminated the option of last-minute planning with immediate benefits. Note however, that any transfer prior to October 18, 2018 will be protected and not subject to the new laws; however, the transfers need to be made strategically in the right way.


Penalty for Asset Transfers: Transfers made during the look-back period will be subject to a penalty period (a period of ineligibility) that can last up to 5 years. The penalty is calculated by using a set amount as a divisor (the monthly MAPR for a veteran with one dependent, which is currently $2,169.00 per month for Improved Pension with Aid & Attendance), regardless of whether the application is for a surviving spouse or a qualifying veteran. Once determined, the penalty period begins on the first day of the month that follows the last asset transferred.


Net Worth Test: The prior “asset test” was “sufficient means” which was generally around the $80,000 mark. Under the new regulations, the asset limit is now set at $123,600 for 2018 and increased each year with inflation. The asset test takes into account all assets (minus the primary residence and personal belongings like cars) plus annual gross income, minus permissible medical expenses. Be sure to check with an experienced attorney who is also accredited agent by the VA to determine whether your assets are countable or exempt under the new laws.


Allowable Medical Expenses: The changes now allow qualified veterans and widows to deduct Independent Living Facilities expenses as a deductible medical expense as long as a physician, physician assistant, certified nurse practitioner, or clinical nurse specialist says that the person EITHER needs assistance with 2 ADLs (Activities of Daily Living) OR supervision due to cognitive or physical limitations. Previously only home care, assisted living and nursing home care costs were allowed as deductions.

CALL TO ACTION!

If you are a Veteran or Widow(er) of a Veteran and want or need help paying long term care costs, you should:

• Contact a VA  Elderlaw Attorney as soon as possible to determine if you would benefit from VA Benefits Planning.
• Complete ALL asset protection planning before the October 18th deadline. All transfers that occur prior to October 18th will not be penalized under the new rules, even if an application for benefits is filed after that date. To be protected from the impact of the new rules, all planning should be completed by October 18th.

If you provide services for Veterans, you and your team need to know about these new rules. Contact our office to find out about upcoming educational workshops and training opportunities on the VA’s updated rules or to refer your clients directly to us as time is of the essence.

Read the new rules and a discussion of the changes here: Net Worth, Asset Transfers, and Income Exclusions for Needs-Based Benefits.

Read the following prior articles published on this blog regarding the changes:

• Proposed VA Regs Would Create Transfer Penalties for Pension Applicants
• NAELA Says the VA Could Be Sued If Proposed Transfer Regs Are Enacted