By HYMAN G. DARLING, Esq.
1. Engage competent counsel. It is very important to ensure that the lawyer you have selected is knowledgeable in elder law. In this sub-specialty of estate planning, specially trained lawyers assist with tax, estate planning, and asset-protection planning.
2. Review tax issues. Any time there is a gift, transfer, or any transaction involving real estate, stocks, bonds, and often CDs or bank accounts, income-tax, estate-tax, and gift-tax consequences must be reviewed.
3. Purchase a pre-paid funeral. In most states, including Massachusetts, it is permissible to pre-pay a funeral or establish an irrevocable trust for burial expenses.
4. Open a burial account. Any person applying for Medicaid is also permitted to have a $1,500 burial account. This must be listed as such, and no funds may be added or withdrawn in the future.
5. Purchase a new vehicle if allowable. A reasonable amount may be spent on a car if the institutionalized person has a spouse who is not institutionalized.
6. Purchase a new home and make home improvements. If a couple is renting and have sufficient assets to purchase a house or condominium, this may be an acceptable transaction, provided that one spouse still lives at home.
7. Purchase personal items or household goods. Certain items of tangible personal property, such as new furnishings, carpeting, television, clothing, and other goods may allowable under the regulations.
8. Pay off debts. Payment of a mortgage, outstanding medical bills, credit-card bills, etc. is allowable.
9. Take a vacation. This expenditure of money on yourself is allowable.
10Review all proposed expenditures with an elder-law attorney before making any payments, decisions, or gifts. This will help prevent mistakes.

Hyman G. Darling

Attorney Hyman G. Darling is chairman of Bacon Wilson, P.C.’s Estate Planning and Elder Law departments, and he is recognized as the area’s preeminent estate planner. His areas of expertise include all areas of estate-planning, probate, and elder law. Darling is a past president of the Hampden County Bar Assoc., teaches elder law at Bay Path College, and is an adjunct professor at Western New England College School of Law (the LLM program), where he teaches elder law. He hosts a popular estate-planning blog at bwlaw.blogs.com/estate_planning_bits; (413) 781-0560; hdarling@baconwilson.com