Basking Ridge Alzheimer’s and Dementia Planning Lawyer
At Van Dyck Law Group, we understand the fear and worry these questions bring, and we’re here to help. Our dedicated Basking Ridge dementia legal planning lawyers will listen to your concerns, answer your questions, and recommend solutions.
People living with Alzheimer’s or other forms of dementia and their families face distinct legal and financial challenges. The cost of long-term care in New Jersey is exceptionally high, often exceeding thousands of dollars per month, depending on the type and intensity of support required.
Expenses vary based on whether services are provided at home, in assisted living, through adult day care programs, or in a nursing facility. Still, for most households, these costs can be financially overwhelming.
Aside from concerns about care costs, those living with dementia may have worries about future medical and financial decisions. Who will manage their care or financial choices if they are unable to do so? How can they be sure their wishes will be followed?
Our lawyers at Van Dyck Law Group will assist you with creating an action plan to ensure your wishes are carried out as you want in the future. Additionally, we can advise you on options for financing care, including Medicaid eligibility.
What Is the Legal Capacity of a Person With Dementia?
Legal capacity refers to a person’s ability to make informed decisions. This requires that the person be able to absorb and understand new information and apply it in making decisions.
If a person can’t perform these actions, they may be considered incapacitated.
Dementia affects cognitive abilities, including thinking, learning, and memory. As the condition advances, a person may gradually lose the ability to comprehend information and make independent choices without assistance. As a result, they no longer have legal capacity.
However, you should not assume that everyone with dementia is incapacitated. In the early stages, people often still have legal capacity.
This is one reason why we recommend that you contact a Basking Ridge Alzheimer’s planning attorney as soon as possible. We’ll walk you through the necessary decisions, including assigning a power of attorney to make medical and financial choices if you are no longer able to do so.
Additionally, we can assist you with other estate planning needs, such as:
- Creating a will
- Establishing a care plan
- Setting up an advance healthcare directive
- Planning to pay for long-term care
- Determining Medicaid eligibility
- Establishing a trust to protect assets
In order to avoid any concerns about the validity of your legal documents later on, your lawyer may advise you to undergo a medical exam to determine capacity. Once you are found to have capacity, you can sign documents as needed.
What If You Just Found Out Your Parent or Other Relative is Incapacitated?
This can be an upsetting situation. If your family member’s dementia progressed quickly, they may not have been diagnosed in time to make their own decisions. Without documents such as a power of attorney or an advance healthcare directive, it will be necessary to establish a guardianship or conservatorship for the incapacitated person.
Your Basking Ridge Alzheimer’s and dementia planning lawyer can assist you in applying for Letters of Guardianship. This will require approval by a Superior Court judge, also known as a County Surrogate.
The guardianship application must include certifications from either two physicians or one physician, along with a psychologist. Until the County Surrogate formally approves the applicant, they are not authorized to act as a guardian.
For instance, someone who has not yet been qualified cannot make medical decisions on behalf of the individual in need of protection.
To obtain approval, the prospective guardian must complete and sign documents acknowledging acceptance of the role. Additionally, required fees must be paid to the Surrogate’s office to issue the official Letters of Guardianship.
The guardianship itself is legally established once a Superior Court judge enters the judgment.
This process can take several weeks or months to complete, so if there is an urgent need to make a decision, you should let your attorney know.
When Should You Begin Financial Planning for Memory Care?
Memory care refers to a type of long-term residential setting designed to deliver focused, specialized support to individuals experiencing memory impairment. People living with Alzheimer’s disease or other forms of dementia can benefit from the structured environment and round-the-clock assistance these facilities provide.
Typically, memory care is delivered in an assisted living or nursing home facility. This building will have special security measures to ensure the safety of residents, who may wander or become confused due to their illness.
Examples of these additional safety measures include elevators with codes and enclosed outdoor facilities.
Because of these extra measures and 24/7 assistance, memory care is more expensive than traditional assisted living. The national average cost is $94,788 per year, which is unaffordable for many New Jersey families.
This is another reason we recommend you begin financial planning immediately. It’s never too soon to start planning, but waiting may reduce your options.
Will Medicare and Medicaid Cover Memory Care and Other Long-Term Care Costs?
Medicare covers some costs associated with dementia and memory care, but does not pay for long-term stays in assisted living or a nursing home. Medicaid may cover these situations, but only if you meet strict eligibility requirements for income and assets.
Individuals living with dementia often require extended care, whether through nursing facilities or in-home assistance. Qualifying for Medicaid in these cases typically involves stricter rules. In addition to meeting income guidelines, applicants are generally required to use up any non-exempt assets to contribute toward their care expenses—a process commonly referred to as “asset spend down.”
In New Jersey, the Division of Medical Assistance and Health Services (DMAHS) has the authority to seek reimbursement for long-term care expenses from a Medicaid recipient’s estate. This may include placing a lien on the individual’s property and pursuing repayment after their death.
Understandably, these regulations can be unsettling for older adults who cannot afford long-term care out of pocket yet still want to preserve assets for a spouse, children, or other heirs. If you or a family member is facing this challenge, it’s essential to speak with a Basking Ridge dementia planning attorney. Depending on your situation, there may be strategies—such as establishing a particular type of trust—that can help safeguard some assets while maintaining Medicaid eligibility.
What Are the Other Requirements for Medicaid in New Jersey?
Besides income eligibility, people applying for nursing home coverage through Medicaid will need to show they require a nursing home level of care, or NHLOC. For adult patients in New Jersey, this usually means they need direct help with at least three activities of daily living (ADLs).
ADLs include:
- Bathing and hygiene activities
- Dressing
- Using the restroom
- Moving around
- Getting in and out of bed or changing position in bed
- Having cognitive impairments that require assistance for three or more of these tasks (common in people with advanced dementia)
You or your family member will need an assessment to determine if you or they meet the NHLOC criteria.
Basking Ridge Alzheimer’s and Dementia Planning FAQ
Which Assets and Income are Exempt from Medicaid Eligibility?
With few exceptions, most income is considered when determining eligibility, including retirement income such as pensions and IRAs.
For many people, their most significant asset is their home. A primary residence is typically not considered a countable asset as long as the applicant or their spouse continues to reside there. Other assets that are generally exempt include one vehicle, personal belongings such as clothing and jewelry, life insurance, and burial plots.
Can a Basking Ridge Alzheimer’s Planning Lawyer Help if You Have Received a Medicaid Denial?
We often meet clients who are devastated to learn they have been turned down for Medicaid despite needing coverage for their memory loss. Unfortunately, there are a number of reasons this can occur. Here are just a few:
- Errors in paperwork
- Income or asset ineligibility
- An assessment that shows the applicant doesn’t meet NHLOC criteria
If you believe that you or a loved one was rejected incorrectly, please contact a lawyer right away. We’ll review the situation, identify potential roadblocks, and help you find solutions, such as:
- Spending down, moving, or placing assets in a trust
- Correcting any errors that may have affected your application
- Seeking another assessment
- Appealing the decision
Please note that you should never transfer or gift assets before talking with a lawyer. Although it is sometimes possible to transfer assets without affecting Medicaid eligibility, you must do so carefully. If assets are transferred incorrectly, you could receive Medicaid penalties.
Get Help from a Basking Ridge Dementia Planning Attorney
If you or someone close to you needs guidance with dementia-related legal planning or general estate planning, Van Dyck Law Group can assist. Our experienced Basking Ridge attorneys can explain your choices, answer your questions, and draft the necessary documents based on your preferences. We recognize that receiving a dementia diagnosis can be overwhelming, and we aim to offer clear direction and support throughout the process. Please contact us at (609) 293-2621.
