I’m working with an attorney on a Medicaid plan for my mom per her request. I am her durable POA but she is capable of acting for herself. She does look to me for guidance. She just moved into a nursing home and has limited mobility so I’ve been meeting some with the attorney on her behalf. The attorney quoted a price of $15k and wants her to be pay it up front. This is a highly respected local attorney who I’ve worked with in the past for my own estate planning. He just seems more aggressive now than in the past. My first question is about the paying up front- is this normal practice? It makes me nervous to have her do this. 2nd question is about the price. It seems seems very high but I haven’t been involved in this type of work before. I know it’s hard to give input on that as it can vary by what’s involved and what state you are in but is that comparable to others experience?. I just feel like we are being pushed but I don’t want to start over with another attorney if we don’t have too. But I don’t want my mom or me to be a patsy either.
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Mom has the $ to pay and she’s still cognitive and competent to do whatever needed, so get it done & asap.
As an aside, if mom has property, ask the atty as to what possibly can be done as an agreement or memo of understanding as to your being paid for managing her affairs &/or on being reimbursed for expenses. If there’s family friction, someone or their spouse inevitably will carp that $ you got paid to deal with moms house, property etc so should get less $ after death. Total disregard of your time or expertise nonsense.
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You commented on Miller Trusts in Michigan, so I assume that's where you live. If this attorney is with one of the large firms in Detroit with satellite offices in the suburbs as well as in other cities, the cost could be explained b/c those firms are top of the line. There was another top of the line large firm in Grand Rapids, but I just researched and found that it has offices elsewhere, although a firm with a similar name is still in Grand Rapids.
I'm not asking for the name of the firm; I wouldn't do that. I just wanted to mention that the higher rated law firms, many of which were headquartered in Detroit until suburban offices became more widespread, could be expected to charge more.
I'm not familiar with any firms on the East side of Michigan, so I can't comment on them.
It was also my experience though that the entire cost didn't have to be paid up front. The client signed a retention agreement, paid a down payment, and typically paid the balance either at significant points along the line or when the documents were finished and ready for execution.
What's your question?? Your mom obviously has the funds to pay this attorney, he comes highly recommended, and you have issues with siblings and need peace of mind. And, mom wants to do it her way, which you support.
Doesn't sound like you have a question at all and have more reasons TO use this attorney than not.
Good luck
My Mom had 48k in CDs from Dads insurance. She got a total of $1700 in SS and a very small pension. She had her house worth 100k. As POA I was able to cash in her CDs with very little penalty. With that 48k I was able to place her in an AL hoping the house would sell. Her SS was used to pay the bills on her house and her small pension paid for her needs. When the house did not sell and money was running out I placed Mom into LTC. She had 20k and that paid privately for 2 months. Gave me time to apply and get info to Medicaid and spend down that 20k. The 3rd month Medicaid kicked in. Mom was under the income cap of just over $2300 and spent down to way under the 2k of assets allowed. With Medicaid the house is an exempt asset unless sold. Then proceeds need to be used for Moms care.
I really don't see the need for a lawyer unless your Moms finances are complicated. If her monthly income is over the income cap, then a lawyer is needed to set up a Miller Trust (another name is a Qualifying Income Trust).
The fee sounds high to me but I sure don't know your mom's situation.
I agree with Barb. Make sure the attorney is CELA level.
Once mom has reduced her assets to Medicaid requirements, there will be no funds left to pay the attorney.
What do you get for 15k?
Several years ago, a friend who has since died spent 30k setting up a very complex trust. This was in NYC.
Is this a CELA certified attorney?
Read this link from NoLo:
https://www.nolo.com/legal-encyclopedia/the-cost-of-estate-planning-how-much-will-you-pay.html