THE REVERE ADVOCATE – FRIDAY, MAY 12, 2023 Page 13 BBB Tip: Hiring construction and remodeling services you can trust T here are many motivations for taking on a remodeling project – improving curb appeal, adding new features to a room, updating your interior, etc. Before starting construction or remodeling, homeowners must consider carefully who should work in their home; fi nd Better Business Bureau (BBB)– rated remodeling companies near you at https://www.bbb. org/near-me/remodeling. There are also some specifi c things to consider before work begins: • Plan your project from start to fi nish. Talk to friends or family members who have remodPOOLED TRUSTS ELIGIBILITY OPERATIONS MEMO 23-15 M assHealth has just recently issued Eligibility Operations Memo 23-15 regarding how it will be treating pooled trusts. Pooled trusts are utilized typically when a single individual is applying for MassHealth benefi ts and is over the asset limit. A Payment is made to the non-profi t organization that administers the pooled trust in order to reduce the applicant’s countable resources to $2,000. The administrator of the pooled trust may use the monies set aside for the applicant for support services that MassHealth does not pay for or for the purchase if items that MassHealth does not pay for, such as a computer. Any monies left over upon the MassHealth recipient’s death has to be utilized to pay back MassHealth for benefi ts paid on behalf of the recipient and typically 10% of the funds remaining will be kept by the pooled trust organization (often 20% if the recipient was receiving MassHealth benefi ts for two years or longer). If there are still monies remaining, those monies will be distributed to the family of the MassHealth recipient. The benefit is that MassHealth pays a nursing home anywhere from fifty to sixty percent of the private pay amount. Therefore, the amount that has to be repaid is much lower than the private pay rate allowing for the funds in the pooled trust to last longer. There is a chance that money will be left for the family to enjoy. Currently, a single person can put money into a pooled trust if over the eling work you like. Find pictures of what you like to show the contractor what you want. If you leave any decisions up to the contractor, ensure you put budget and material requirements in the contract. Be clear about who is responsible for ordering materials and when they need to do it. Remember that delivery and construction times might aff ect your schedule; decide when workers may be in your home and where they should store any materials and equipment when they are not there. • Figure out your entire budget. Don’t forget things like eating out more than usual if you are doing a kitchen remodel or hotel expenses if you have to move out of your home during any work. Expect to have a little extra money in the budget to cover any unexpected expenses, especially when working on an older home. Decide if you need to split the project into phases based on how the budget is shaping up. If the contractor arranges to fi nance the remodeling work, be sure you understand all aspects of the terms, especially if you are taking out a second mortgage on your home or a home equity line as security. You might want to ask about putting an arbitration clause into your contract in case of any dispute between you and your contractor. Get all changes in writing before work continues. • Inspect prior work. When you talk to potential contractors, ask them for examples of work they have done that is similar to what you want. Find out if it is possible to contact previous clients and inspect the work that was done for them. You will also want to ask the client if the project was fi nished on time, if they were satisfi ed with the work and if any unexpected costs were added during the project. Ask and check to see if the contractor is licensed and bonded in your city and state to perform the work. Be sure to check out their BBB profi le for reviews and licensing information. • Approve architectural plans. If your project requires plans from an architect, ensure you are involved in discussions with them and approve any plans before work begins. • Research permits. Talk to your remodeling contractor about permits and do independent research to determine what is required. Make sure the remodeler will be able to obtain permits before starting the work. Learn more about hiring a reliable and trustworthy contractor. See all of our home improvement tips on BBB.org/ HomeHQ. Always do business with contractors that adhere to BBB Standards for Trust. If you own a business, get accredited. Law Offices of asset limit and immediately qualify for MassHealth. There is no fi ve-year look back period requirement. This recent memo is stating that after March 1, 2024, there will be a fi ve-year lookback period requirement for funds placed into a pooled trust for applicants over the age of 65. Currently, there is no fi ve-year look back period requirement for applicants who have funded a pooled trust at age 64 or younger, regardless of whether an application for MassHealth benefi ts is not submitted until age 65 or later, and that provision will remain the same. The likelihood is that this memo is designed to provide our state legislature time to enact legislation to allow for pooled trust to continue to be utilized as they have been in the past thereby requiring no fi ve-year look-back period in order to avoid a disqualifying transfer. For example, if you wish to transfer your home into an irrevocable trust, you have to wait for fi ve years in order to avoid a disqualifying transfer. We’ll see what law is actually passed in hopes of protecting the use of pooled trusts. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. JOSEPH D. CATALDO, P.C. “ATTORNEYS AND COUNSELORS AT LAW” ESTATE/MEDICAID PLANNING WILLS/TRUSTS/ESTATES INCOME TAX PREPARATION WEALTH MANAGEMENT RETIREMENT PLANNING ELDER LAW 369 Broadway Everett, MA 02149 (617)381-9600 JOSEPH D. CATALDO, CPA, CFP, MST, ESQUIRE. AICPA Personal Financial Specialist Designee
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