Incapacity planning

Question 1

What is a durable power of attorney for heath care (DOOAHC)?

Answer 1

Points a person as attorney, in fact to make decisions on behalf of the principal

It differs from the durable power of attorney because:

Concerns
medical decisions only

Always a springing power

Is drafted separately from the durable power of attorney

Question 2

What is a durable power of attorney for Asset Management?

Answer 2

Become effective only when the principal becomes incompetent.

Allows an individual to manage the person’s financial assets

Question 3

What powers cannot be given to another?

Answer 3

Power to execute or revoke a will

Power to execute a living will (right to die)

Question 4

Durable versus non-durable power of attorney?

Answer 4

Durable power of attorney: authority of agent continues when principle becomes incompetent

Traditional, non-durable power of attorney: power ceases when the principle is no longer legally competent

Question 5

What is a springing power of attorney?

Answer 5

Springing durable power of attorney: agent has no authority over the principles assets until incompetency

Question 6

General or limited powers of attorney?

Answer 6

General power: granted, the agent power to deal with all of the principles, assets and take any action on the principles behalf

Special powers, which allows the agent to perform only certain acts or to control only specific property

Question 7

Advanced medical directives (living wills)

Answer 7

Legal document directs the clients physicians to discontinue life sustaining procedures if the client is in a terminal condition or permanently unconscious

Question 8

What is a durable power of attorney for healthcare (DPOAHC)?

Answer 8

Client can name a surrogate or attorney in fact to make the medical decisions

Question 9

What are the two advantages of having a revocable trust with a provision that specifies management by the trustee in the event of the grantor incompetency versus a durable power of attorney?

Answer 9

Trustee is generally universally recognized and can be enforced while I durable power of attorney’s authority may not be in particular states

Revocable trust continues after death while a durable power dies at death

Question 10

To qualify for Medicaid applicants must have both income and assets below certain limits and federal rules prohibit individuals from receiving Medicaid coverage if they give money or assets away within how many years

Answer 10

Single individual will not qualify for Medicaid in most states unless he or she has less than $2000 countable assets

Federal rules prohibit individuals from receiving Medicaid coverage if they give money or assets away within five years of incurring nursing home expenses

Question 11

A Medicaid recipient who has annuities and wishes to remain Medicaid eligible must do what?

Answer 11

Must name the state as a remainder beneficiary to cover the state incurred expenses

Question 12

What is a special needs trust (SNT)?

Answer 12

Allows the beneficiary to continue receiving public benefits, such as Medicaid, section 8 housing, and supplemental security income

Trust can pay only for supplemental needs, not covered by those programs

Those extras might include things like private duty, nursing care, furniture, and supplemental housing expenses, and even a few luxuries, such as swimming lessons or vacations

Question 13

What is a payback trust?

Answer 13

Important exception to the 60 month look back. Period to qualify for Medicaid when the person has assets.

Allows a disabled individual who is under the age of 65 to remain eligible for Medicaid by transferring his or her assets to an irrevocable payback trust

If there are any assets remaining, when the disabled beneficiary dies state is entitled be paid back any of the funds Medicaid paid on behalf of the deceased beneficiary