Essex County Alzheimer’s and Dementia Planning Lawyer

New Jersey ranks sixth in the nation for rates of Alzheimer’s disease among seniors, with around 185,000 people in the state suffering from this illness. In Essex County, many families worry about what the future will hold for their loved ones with dementia. If you or a family member has recently received such a diagnosis, you may have questions such as:

• Who will make the necessary decisions about care when my loved one can’t?
• How will we afford long-term care costs?
• What legal steps should my family member take for estate planning and future care needs?

At Van Dyck Law Group, we understand the uncertainty and concern that follow a dementia diagnosis, and our legal team is available and more than ready to assist you in creating an action plan. We’re always here to answer your questions, lay out your options, and help you prepare the needed documents to solidify not just your present plans but also your plans in the years to come.

What Type of Power of Attorney Do You Need?

Although there are several different options for a power-of-attorney document, we usually recommend a durable power of attorney. This remains in effect after the principal or grantor becomes incapacitated, allowing for a smooth transition.

What Can a Power of Attorney Do?

It depends on the type of power-of-attorney document you choose. You can create a general power of attorney that allows the person you’ve selected, called an agent, to make a broad array of decisions. Or, you can create a more limited power of attorney. With this option, you can divide responsibilities among people you trust.

For instance, you could create a power of attorney just for selling your home or other property. The agent will then be able to make decisions related only to this task.

A financial power of attorney extends wider powers related to all your financial needs. This person will be able to pay bills, access your bank accounts, file your taxes, complete real estate transactions or other sales, and more.

You might also create a medical power of attorney or a healthcare proxy, which designates an agent to be in charge of medical or healthcare decisions. This agent can choose your doctors, where you receive care (including assisted living or nursing home facilities), what treatments you have, and more.

How Does an Essex County Dementia Planning Attorney Help with Long-Term Care Planning?

There are many important considerations in long-term care planning. You want to find solutions that work for your needs, which may include in-home care, an assisted living facility, a nursing home, or some combination of these.

Unfortunately, these concerns are often overridden by an overwhelming worry about advanced dementia care costs. Long-term care is expensive, and many patients find it unaffordable. Others are concerned that the costs will wipe out their retirement savings and assets they want to pass on to their heirs.

Your Essex County dementia planning lawyer can help you address all these considerations. First, we’ll discuss the types of care you may need and how you want to receive care. Some people prefer community living, while others would rather remain at home for as much time as possible.

We’ll also talk about medical treatment and end-of-life care. By creating an advance healthcare directive, you can specify what treatments or life-extending measures you want—or don’t want. This may reduce the number of difficult decisions your healthcare proxy needs to make in the future and give them peace of mind.

Finally, we’ll review your finances and consider the potential costs of long-term care, then tackle the question of how to pay for it. If it appears that you will need assistance from Medicaid and other programs, we’ll look at possible roadblocks, such as assets and income beyond the limit allowed by Medicaid.

Do You Have to Spend Down All Your Assets to Receive Medicaid?

The asset/income requirements for Medicaid are subject to change, but they are generally very low. Many people are told they don’t currently qualify, but they can “spend down” their assets on medical care and will eventually become eligible. However, they may not want to do so for various reasons.

It’s helpful to understand that asset spend-down is one method to ensure Medicaid eligibility. It is sometimes a good option, especially if you or your loved one needs expensive, long-term care right away. This is due to Medicaid’s five-year “look-back” period, during which they analyze transactions from the past five years to ensure that assets haven’t been given away or sold below fair market value.

However, if you begin planning right away after a memory loss diagnosis, you may have time to explore other options. In some cases, transferring assets into a trust can help protect them from being counted toward Medicaid eligibility.

You may also be able to transfer assets to a spouse, a disabled child, or a caregiver child under certain circumstances. It’s essential to have proper legal guidance regarding any transfers, as performing a transfer incorrectly can trigger penalties.

Your attorney will also review your assets to determine if any of them are exempt. A primary residence is typically exempt if your spouse still lives there, as is one vehicle, and personal belongings.

Essex County Alzheimer’s and Dementia Planning FAQ

If You Get A Medicaid Penalty, Are You Disqualified Forever?

Not necessarily. However, if you incur a large enough penalty, you might be disqualified for longer than you will need care.

Medicaid penalties are based on a “penalty divisor,” or an annually adjusted average daily cost of nursing home services. Currently, the number is $402.74 in New Jersey, but this amount is subject to change.

If Medicaid believes that you have transferred assets in a way that circumvents their rules about eligibility, they will divide the asset amount by the penalty divisor. The result is the number of days you will be penalized for.

So, if you transferred $10,000 in assets, divided by $402.74, you would be penalized for about 25 days. However, if you transferred $100,000, your penalty would be about 248 days.

While 25 days may not seem like a long time, for someone who needs an assisted living or nursing home level of care, it is. This penalty would likely delay your care, possibly worsening your condition and quality of life. Your family members may have to take time off work to care for you, and you might still miss necessary medical treatments or equipment. If you don’t have family or friends who can help, you could be in a very bad position.

For these reasons, it’s best to avoid penalties by planning ahead of time. An experienced Essex County Alzheimer’s planning attorney who is familiar with the Medicaid system can help you move assets correctly so you can maintain eligibility.

What Happens if You Do Not Choose a Power of Attorney Before Becoming Incapacitated?

It will still be necessary for another person to take over managing your affairs, but you will not be able to choose this person. Instead, the New Jersey court system will decide for you. Typically, this happens when a relative or other concerned party files for Letters of Guardianship. The process can be expensive and time-consuming, so we recommend assigning a power of attorney instead.

Suppose you are assisting a family member who is already incapacitated and does not have a power of attorney. In that case, your Essex County Alzheimer’s planning attorney can help you to seek a guardianship or conservatorship. Since the process can take weeks or months, it’s best to contact a lawyer right away.

Who is Legally Responsible for a Person with Dementia?

A person with dementia is legally responsible for their affairs until they become incapacitated or unable to make their own decisions. This typically happens when they are no longer able to understand new information and the consequences of their choices. Then, someone else must step in and handle medical, financial, and legal decisions for the incapacitated person.

If you or a loved one has recently been diagnosed with dementia, now is the best time to decide who should handle your decisions when you are no longer able to. So long as you still have legal capacity, you can sign a power of attorney document assigning someone else the ability to manage your affairs. We may recommend that you undergo a medical exam to establish capacity, so that there will be no potential concerns later.

Contact Essex County Alzheimer’s Planning Lawyer at Van Dyck Law Group for Legal Guidance

If you or a loved one is facing the legal challenges that often follow a dementia diagnosis or needs assistance with estate planning, Van Dyck Law Group is ready to help. Our knowledgeable dementia legal planning attorneys are committed to guiding you through your options, answering your questions, and preparing legal documents that reflect your intentions. We understand the emotional and logistical hurdles that come with dementia-related planning, and we’re here to provide steady, compassionate support every step of the way. We provide our Alzheimer’s and dementia planning legal services to Essex County, including Montclair, Newark, and the surrounding areas. Please contact us right away at (609) 293-2621.