10 Common Asset Preservation Mistakes

As published in The Retirement Connection Guide:

Provided by: J. Thomas Pixton, The Pixton Law Firm

For more information: www.PixtonLaw.com, 503-968-2020

1. Transferring all assets to children or other relatives. This almost always results in a penalty period of ineligibility that begins after application for Medicaid and other public assistance. Tax consequences can be significant. Make gifts only with legal counsel.
2. Selling the family home to pay for nursing home costs. This is often not required, yet many still believe that the home must be sold to pay for care.
3. Relying only on a will or living trust. A will has no effect until approved in probate proceedings after death. A living trust is preferable in most cases, but generally does not protect assets from

Can Mom Give Me a Power of Attorney?

As published in The Retirement Connection Guide:

Can Mom Give Me A Power of Attorney?
Diagnosis of Dementia May Not Preclude Signing POA and Health Care Directive
Article provided by: Tom Pixton, wwww.PixtonLaw.com


“I need to get a power of attorney for my mother. She’s in an Alzheimer’s unit and she can’t take care of her finances or make medical decisions any more.”

That is the most common first call we get. A caller has been told by a friend or a case manager the nursing home that a power of attorney is required, and that it will take a lawyer to write one up for them.

Can our caller “get” a power of attorney for her mother? Not exactly. Only her mother can “give” a power of attorney and her mother will need to make the decision herself – and she may (for whatever reason) refuse.

There is a lot of understandable confusion about powers of attorney, guardianship and conservatorship. It is important to understand the difference between them. A competent adult may sign a power of attorney giving another person the authority to make financial decisions. But once an individual has

Answers to Common Medicaid Questions

As published in The Retirement Connection Guide:

Provided by: J. Thomas Pixton, The Pixton Law Firm
For more information: www.PixtonLaw.com, 503-968-2020

Q: Medicare paid for Dad’s hospital after his stroke. Won’t Medicare pay for nursing home, too?

A:  No. Medicare and Medicaid are two different programs. Medicaid may pay for long term care if your dad qualifies. Medicaid rules are complicated and change over time.

Q: Mom can’t take care of Dad at home anymore. To qualify for Medicaid, will they have to sell their house and spend down all their investments?

A: Your parents residence is exempt, so they can keep the house. Depending on the value of their investments, your parents may have to “spend down” some assets. They can spend down “dumb” or they can spend down “smart.”  With help from an experienced elder lawyer, they can spend down “smart” or even avoid a spend down entirely.

Q: Will Medicaid take my parents’ house or put a lien on it?

A: No. Medicaid does not put a lien on the house. However, Medicaid may make a claim against your Dad’s estate for payback after he passes away.  An experienced elder lawyer may help your parents with legal ways to avoid a claim entirely or at least delay the claim until