CFG Legal & Regulatory Issues in Elder Care 3 — Questions and Answers
Question 1: Which type of trust allows an elder to retain assets while still qualifying for Medicaid long-term care benefits, used in some states?
- Revocable living trust
- Qualified Income Trust (Miller Trust) (Correct answer)
- Charitable remainder trust
- Irrevocable life insurance trust
Correct answer: Qualified Income Trust (Miller Trust)
A Qualified Income Trust (Miller Trust) is used in income-cap states to allow individuals with income exceeding Medicaid limits to still qualify.
Question 2: Elder financial abuse perpetrated by a family member or trusted person is legally classified as:
- Misdemeanor fraud only
- A form of elder abuse subject to criminal and civil penalties (Correct answer)
- A private civil matter with no criminal exposure
- Only actionable if the elder has dementia
Correct answer: A form of elder abuse subject to criminal and civil penalties
Financial exploitation by family members or caregivers constitutes elder abuse under both state and federal law, carrying criminal and civil penalties.
Question 3: The 'community spouse resource allowance' (CSRA) under Medicaid protects assets for:
- The Medicaid applicant entering a nursing home
- The spouse remaining at home (Correct answer)
- Adult children of the applicant
- The nursing facility receiving payment
Correct answer: The spouse remaining at home
The CSRA allows the community (at-home) spouse to keep a portion of the couple's assets so they are not impoverished by the nursing home spouse's Medicaid spend-down.
Question 4: Which federal act prohibits age discrimination in employment for workers aged 40 and older?
- Americans with Disabilities Act
- Age Discrimination in Employment Act (ADEA) (Correct answer)
- Older Workers Benefit Protection Act
- Employee Retirement Income Security Act
Correct answer: Age Discrimination in Employment Act (ADEA)
The ADEA protects workers 40 and older from discrimination in hiring, promotion, pay, and other employment conditions.
Question 5: A guardianship proceeding removes which right from an incapacitated adult?
- The right to receive Social Security benefits
- The legal right to make personal and/or financial decisions (Correct answer)
- The right to own real property
- The right to receive Medicare benefits
Correct answer: The legal right to make personal and/or financial decisions
Guardianship transfers decision-making authority from the incapacitated ward to a court-appointed guardian for personal and/or financial matters.
Question 6: Which document appoints someone to make healthcare decisions on behalf of an incapacitated person, separate from a living will?
- Durable power of attorney for finances
- Healthcare proxy (healthcare power of attorney) (Correct answer)
- Conservatorship order
- Do-Not-Resuscitate order
Correct answer: Healthcare proxy (healthcare power of attorney)
A healthcare proxy or healthcare power of attorney designates an agent to make medical decisions when the principal cannot do so.
Question 7: Under the Nursing Home Reform Act (OBRA 1987), nursing home residents have the right to:
- Choose their own physician and refuse treatment (Correct answer)
- Be discharged within 30 days for any reason
- Waive all rights upon admission
- Be charged for any personal belongings kept at the facility
Correct answer: Choose their own physician and refuse treatment
OBRA 1987 established a residents' bill of rights including the right to choose a physician and refuse treatment.
CFG Legal & Regulatory Issues in Elder Care 3
Which type of trust allows an elder to retain assets while still qualifying for Medicaid long-term care benefits, used in some states?