Michigan Elder Law Attorneys Who Plan Ahead—So Your Family Doesn’t Pay the Price Later

Your parents worked their entire lives to build what they have. Now you’re watching that legacy slip away—consumed by nursing home costs, confusing Medicaid rules, and decisions nobody prepared you to make. At Boroja, Bernier & Associates, we don’t wait for crisis to strike. We plan proactively, protect assets legally, and give families the clarity they deserve before options disappear.

Serving Macomb, Oakland & Wayne Counties | Southeast Michigan | Central Michigan | Mid-Michigan

Meet Daniel Boroja, Elder Law Partner

Watching Your Parents Age Is Hard Enough. Watching Their Life Savings Disappear Shouldn’t Be Part of It.

You never expected to be here.

One day you’re living your life. The next, you’re Googling “how to pay for nursing home care” at 2 AM, terrified of what you’re finding.

$9,000 a month. $12,000 a month. Numbers that make your stomach drop. Numbers that could erase everything your parents spent their lives building—in months, not years.

And here’s the part nobody warns you about: the system is designed to take everything first.

Medicaid doesn’t kick in until your parents are nearly broke. Nursing homes have “financial counselors” whose job is getting paid—not protecting your family. And by the time most people realize they need help, the best options have already expired. Gone. Off the table. Thanks for playing.

The five-year look-back period isn’t a suggestion. It’s a wall. Decisions your parents made—or didn’t make—five years ago determine which strategies are available today. That’s not a typo. Five years of planning runway for certain protections, and most families don’t even know the clock is ticking until it’s already run out.

The families who keep the most are the families who plan before crisis hits.

That’s not a sales pitch. That’s math.

Now, here’s what most people don’t realize: even families in crisis have options. They’re different options—crisis planning tools like Medicaid compliant annuities and promissory notes can still protect significant assets even when someone is already in a nursing home or about to be admitted. But proactive planning opens doors that crisis planning can’t. The earlier you start, the more strategies are available, and the more you can protect.

At Boroja, Bernier & Associates, we help Michigan families plan before options narrow—and we help families in crisis salvage what’s still possible.

We don’t dabble in elder law between estate planning appointments. This is core to what we do. We know Michigan Medicaid rules inside and out—the asset limits, the look-back calculations, the exempt asset categories, the spousal protections that can save families hundreds of thousands of dollars when applied correctly.

And we don’t wait for you to figure out what questions to ask. We’ve seen what happens to families who waited too long. We’ve seen what’s possible for families who planned ahead. The difference is substantial—and it’s largely a function of timing.

We raise the standard for elder law planning because “pretty good” Medicaid advice can cost your family everything. Quality elevates the room—and in elder law, quality means understanding not just what strategies exist, but which ones actually work for your specific situation, timeline, and goals. The details matter. The timing matters. Getting it right matters. And we treat it that way.

Whether your parents are healthy and you’re thinking ahead, showing early signs of decline and the window is narrowing, or already in crisis and you need to protect what’s still possible—we’re here to give you clarity, options, and a plan that actually works.

“Most families don’t realize that Medicaid planning isn’t about hiding assets—it’s about understanding Michigan’s rules and structuring things properly. The families who preserve the most aren’t gaming the system; they’re either planning years ahead to clear the look-back period, or they’re working with counsel who knows how to use crisis planning tools effectively when time has run out. Either way, expertise makes the difference between protection and devastation.”

Elder Law That’s Proactive, Not Reactive. Here’s Why That Matters.

Most elder law attorneys meet families in crisis mode—after the nursing home admission, after the assets are already at risk, after the easiest options have expired. We do things differently. And that difference shows up in results.

We Plan Before Crisis—Because Early Planning Opens More Doors

Here’s a truth most families learn the hard way: the best elder law strategies require time to become effective.

Asset protection trusts need five years to clear Medicaid’s look-back period. That’s five years of runway—five years most families don’t realize they need until the window has already closed.

Does that mean families in crisis have no options? Absolutely not. Crisis planning tools—Medicaid compliant annuities, promissory notes, half-a-loaf strategies—can protect significant assets even when someone is already in a nursing home bed. We use these tools regularly and effectively.

But here’s the difference: proactive planning lets you choose from the full menu. Crisis planning limits you to what’s left.

Families who plan five years ahead can use irrevocable trusts that remove assets entirely from Medicaid’s reach. Families who plan during crisis can still protect substantial value, but with different tools and different trade-offs. Both approaches work. One works better.

We help families plan while every option is still available. If your parents are healthy today? Now is the time. Not “someday.” Not “when things get worse.” Now—while the full range of strategies is still on the table.

We See the Whole Chessboard

Elder law doesn’t exist in a vacuum. It crashes into estate planning, probate, tax strategy, family dynamics, and healthcare decisions in ways that create landmines for attorneys who only see one piece.

Daniel Boroja’s practice spans estate planning, probate, trust administration, and elder law. That means we see how today’s Medicaid planning affects tomorrow’s estate settlement. We understand how asset transfers interact with step-up basis rules. We know when a strategy that protects from nursing home costs creates a different problem somewhere else.

We win together—and winning means solving your actual problem, not just the piece of it you asked about. Most elder law attorneys fix one issue while accidentally creating three others. We build strategies that account for the full picture—because your family deserves solutions, not new complications.

We Tell You What’s Actually Possible—Not What You Want to Hear

Some families come to us with situations where the best options expired years ago. We’ll tell you that directly.

Not to be discouraging. Not to make you feel bad. But because you deserve honest guidance, not false hope.

We’ve seen families spend thousands on “planning” that couldn’t actually accomplish anything meaningful because the attorney didn’t have the backbone to deliver hard truths. That’s not how we operate.

Accountability builds trust. We assess your situation honestly. We explain what’s realistically achievable—whether that’s comprehensive protection through proactive planning or meaningful salvage through crisis strategies. We tell you the trade-offs. And if we genuinely can’t help you significantly, we’ll tell you that too, before you invest in strategies that won’t produce results worth the cost.

We Don’t Let Things Sit

When your parent’s health is declining and the planning window is closing, you can’t afford an attorney who takes three weeks to return calls. Medicaid applications don’t file themselves. Trust documents don’t draft themselves. And the calendar doesn’t pause while your lawyer gets around to it.

We move with urgency, resilience, and purpose. Our hustle isn’t chaos—it’s focused persistence. When timing matters—and in elder law, it almost always does—we don’t let things languish. Asset protection trusts get drafted and funded. Medicaid applications get submitted correctly the first time. Crisis planning strategies get implemented within the windows that matter.

Results over effort. Effort is expected—results are required. We measure success by families protected and assets preserved, not by meetings scheduled or hours logged. Every action we take gets measured against one question: Does this move your family toward security?

We Stay With You

Elder law situations don’t stay static. Your parent’s health changes. Care needs escalate. Medicaid rules shift—like the 2025 asset limit increase that changed planning calculations overnight.

When those changes happen, you need counsel who knows your family’s history. Who understands what’s already in place. Who can adapt the strategy without starting from zero.

Client success, team growth, and firm performance are inseparable. That’s not corporate-speak—it’s why we maintain ongoing relationships with elder law clients. Your situation evolving is part of the deal. We stay available because that’s what actual partnership looks like.

Medicaid Planning

Medicaid Planning: Protecting Your Family from Nursing Home Costs—Legally and Ethically

Let’s start with the number that keeps families awake at night: $9,000 to $12,000 per month.

That’s Michigan nursing home care. One year: $108,000 to $144,000. Average stay: longer than a year. For families who didn’t plan, watching a lifetime of savings vanish in months isn’t hypothetical—it’s Tuesday.

Medicaid exists to help. But the rules are designed to make sure you’re nearly broke before help arrives. Without planning, most families must “spend down” almost everything before qualifying.

Medicaid planning changes that math.

Through legal, ethical strategies implemented at the right time, families can protect significant assets while still qualifying for Medicaid when care becomes necessary. This isn’t hiding money. It isn’t fraud. It’s understanding Michigan’s rules and using them properly—within the law—to protect what your family has built.

Understanding Michigan Medicaid Eligibility

To qualify for Medicaid nursing home benefits in Michigan, applicants must meet both medical and financial requirements.

Medical Requirement: The applicant must need nursing home-level care—typically documented through assessment showing they require assistance with activities of daily living.

Financial Requirements (2026):

• Asset Limit: As of 2026, an individual applicant can have no more than $9,950 in countable assets. This limit was dramatically increased in 2025 (from the absurdly low $2,000 threshold that hadn’t meaningfully changed in decades) and now adjusts annually for inflation.
• Income Limit: Michigan has specific income rules, though excess income can often be addressed through proper planning structures.
• Exempt Assets: Certain assets don’t count—primary residence (within equity limits), one vehicle, personal belongings, prepaid burial arrangements—but the rules are specific and exceptions are narrow.

The Five-Year Look-Back: Understanding What It Means

When someone applies for Medicaid, Michigan reviews every financial transaction from the previous five years (60 months). Certain transfers made during this window can trigger a penalty period—months of Medicaid ineligibility despite otherwise qualifying.

The math is straightforward but unforgiving: penalty period equals transferred value divided by average monthly nursing home cost. Transfer $100,000 to family members within the look-back period without proper planning? You just created approximately a year of ineligibility—while the nursing home still expects its monthly check.

Here’s what this means for planning:

• Proactive strategies like irrevocable Medicaid asset protection trusts need to be implemented more than five years before a Medicaid application to avoid triggering penalties. These are the most powerful protection tools—but they require runway.
• Crisis strategies like Medicaid compliant annuities, promissory notes, and half-a-loaf planning can be implemented even when someone is already in a nursing home or about to be admitted—often in the same month as the application. These tools don’t require five years because they’re structured to comply with Medicaid rules rather than relying on the look-back period to expire.

The families who have the most options are the families who plan early. But families in crisis aren’t without recourse—they just need counsel who knows how to use crisis tools effectively.

Proactive Medicaid Planning Strategies

For families with time to plan—ideally five or more years before care is needed:

Medicaid Asset Protection Trusts: Irrevocable trusts that remove assets from your parent’s countable estate. Once the five-year look-back period passes, assets in these trusts are generally protected from Medicaid spend-down while potentially being preserved for heirs. These trusts offer the most comprehensive protection but require the longest runway.

Spousal Protections: When one spouse needs nursing home care and the other remains at home, special rules protect the “community spouse.” Understanding these protections—Community Spouse Resource Allowance, Minimum Monthly Maintenance Needs Allowance—can preserve substantial assets for the spouse remaining at home. These protections exist regardless of timing, but proactive planning maximizes their benefit.

Exempt Asset Planning: Strategic use of exempt asset categories—home improvements, vehicle purchases, prepaid burial arrangements—to reduce countable assets while preserving family value. Most effective when done as part of comprehensive planning rather than last-minute scrambling.

Crisis Medicaid Planning Strategies

For families facing immediate or imminent nursing home placement:

Medicaid Compliant Annuities: Financial instruments that convert countable assets into an income stream structured to meet Medicaid requirements. When properly designed—immediate, irrevocable, non-assignable, actuarially sound, and with the state named as remainder beneficiary—these annuities can protect significant assets even when created the same month as the Medicaid application. Particularly valuable for married couples where one spouse needs care and the other remains at home.

Promissory Notes: Properly structured notes that convert lump-sum assets into Medicaid-compliant income streams. Like annuities, these can be created during crisis and still provide meaningful protection when structured correctly.

Half-a-Loaf Planning: A crisis strategy that combines asset protection trusts with precise timing calculations. A portion of assets is transferred into a Medicaid asset protection trust (which triggers a penalty period), while the remaining portion is either retained to pay privately through that penalty period or converted to a Medicaid compliant annuity that provides income during the penalty. This approach can preserve significant value even within the look-back period, but it requires precise calculation—transfer too much and your parent runs out of money before the penalty expires; transfer too little and you’ve protected less than possible.

Personal Care Agreements: Properly structured agreements that convert assets into fair-market compensation for family caregiving. When documented correctly with contemporaneous records, these can reduce countable assets while compensating family members for care they’re actually providing.

Quotable Expert Statement: “The 2025 Medicaid asset limit increase from $2,000 to nearly $10,000 was the biggest change in decades. But don’t let the headlines fool you: $9,950 is still pocket change when nursing homes charge $9,000 to $12,000 monthly. The limit change helps at the margins—it doesn’t eliminate the need for comprehensive planning. Families with meaningful assets to protect still need strategies. The question is whether they’ll plan proactively with full options, or reactively with crisis tools.”

Service Area: We provide Medicaid planning services throughout Macomb County, Oakland County, Wayne County, Southeast Michigan, Central Michigan (Ingham County, Eaton County), and Mid-Michigan (Genesee County, Lapeer County).

Ready to protect your family from nursing home costs?

Schedule a Medicaid planning consultation

Long-Term Care Planning

Medicaid planning focuses on qualification for benefits. Long-term care planning is bigger—it’s preparing your family for the financial, legal, and practical realities of aging before crisis turns planning into scrambling.

The best time to have this conversation? When nobody needs care yet.

The second-best time? Today.

Why Planning Before Care Matters

Planning while your parents are healthy provides advantages that narrow—or disappear entirely—once decline begins:

More Strategies Available: Medicaid asset protection trusts need five years to clear the look-back period. If your parents are healthy today, that door is wide open. If they’re already declining, that door may be closing or closed. Crisis tools like Medicaid compliant annuities and promissory notes will still be available, but the most powerful protection strategies won’t be.

Better Decision-Making: Conversations about care preferences, asset protection, and family responsibilities are hard enough without having them in a hospital waiting room. Planning ahead allows thoughtful discussion instead of panic-driven choices everyone regrets later.

Legal Authority Secured: Powers of attorney must be signed while someone has capacity. Period. Once dementia progresses or incapacity occurs, it’s too late. We’ve watched families face $7,000 guardianship proceedings because they waited too long to get basic documents in place. Don’t be that family.

Family Alignment Achieved: Long-term care decisions create family conflict like nothing else. Who’s responsible for what? Who makes decisions? Who’s doing the actual caregiving? Who’s contributing financially? Planning ahead lets you address these questions before stress makes everyone impossible.

Components of Comprehensive Long-Term Care Planning

Legal Documents: Durable financial power of attorney (compliant with Michigan’s Uniform Power of Attorney Act, MCL 556.201 et seq.), healthcare power of attorney (patient advocate designation), and advance directives documenting care preferences. These aren’t optional—they’re the foundation everything else rests on.

Asset Analysis: What does your parent own? How is it titled? How would Medicaid treat it? How would it pass at death? This analysis identifies vulnerabilities and opportunities before they become emergencies.

Protection Strategy Implementation: For families with sufficient runway, this means Medicaid asset protection trusts and comprehensive repositioning of assets. The goal: remove assets from Medicaid’s reach entirely, with five years of buffer before they’d ever be needed.

Care Preferences Documented: What does your parent actually want? Care settings. Life-prolonging treatment. Quality-of-life priorities. These conversations are uncomfortable but far easier now than when they’re urgent and emotions are raw.

Family Coordination Clarified: Who handles what? How do decisions get made? How does caregiving get shared? How do costs get divided? Clarity now prevents family explosions later.

The Conversation Nobody Wants to Start

Most adult children don’t know how to bring this up. It feels awkward—like you’re rushing your parents toward decline. Or worse, like you’re eyeing their assets.

Here’s what we’ve learned serving Michigan families: your parents are probably relieved when you bring it up. They’ve been worrying about this too. They don’t want to be a burden. They want to protect what they’ve built. They just don’t know where to start—and they’ve been waiting for someone to help them start.

We can facilitate these conversations. Sometimes having a neutral professional in the room makes difficult topics easier. Sometimes families just need someone to explain options clearly so everyone understands what’s at stake and what’s actually possible.

Quality elevates the room. That applies to legal work—and it applies to family conversations about difficult topics. We help families have these discussions productively, with clarity about options and realistic expectations about outcomes.

Ready to start planning before options narrow?

Crisis Planning

Crisis Planning: Protecting What’s Still Possible When Care Is Needed Now

Not everyone has the luxury of planning five years ahead.

Sometimes the call comes without warning: a stroke, a fall, a sudden diagnosis that changes everything. Your parent is in the hospital, discharge to a nursing facility is imminent, and suddenly you’re trying to figure out how to pay $9,000 to $12,000 per month when nobody planned for this.

Crisis planning is what happens when proactive planning didn’t.

Here’s the truth: it’s harder, the options are different, and you won’t preserve as much as early planning would have protected. But families facing immediate care needs aren’t without recourse. Crisis planning tools exist specifically for this situation—and when used correctly, they can still protect significant assets.

What Crisis Planning Involves

When families come to us in crisis, our first priority is rapid assessment: What assets exist? How are they titled? What’s the immediate care situation? Is the person already in a facility or about to be admitted? What’s realistic given the timeline?

From there, we deploy the tools designed for crisis situations:

Medicaid Compliant Annuities: These are workhorses of crisis planning. A Medicaid compliant annuity converts a lump sum of countable assets into an income stream that meets specific federal requirements—immediate, irrevocable, non-assignable, actuarially sound, with the state named as remainder beneficiary.

Here’s why they matter: the annuity can be purchased the same month as the Medicaid application. The principal is no longer a countable asset. The income stream goes to help pay for care or support the community spouse. Done correctly, this single tool can protect tens of thousands—or hundreds of thousands—of dollars even when someone is already in a nursing home.

Promissory Notes: Similar concept, different structure. A properly designed promissory note converts a lump-sum transfer into a Medicaid-compliant income stream. When structured to meet federal requirements, these notes can be created during crisis and still provide meaningful asset protection.

Half-a-Loaf Planning: When someone has significant assets and is facing nursing home admission, half-a-loaf planning combines Medicaid asset protection trusts with precise financial calculations. A portion of assets is transferred into an irrevocable Medicaid asset protection trust (which triggers a penalty period), while the remaining portion is either retained as cash to pay privately through that penalty period, or converted to a Medicaid compliant annuity that provides income during the penalty.

The math requires precision: transfer enough to protect meaningful assets, retain or convert enough to cover costs during the resulting penalty. Get the calculation wrong, and your parent runs out of money before the penalty expires. We don’t guess at this math.

Personal Care Agreements: If family members have been providing care, a properly structured personal care agreement can compensate them at fair market value for services rendered. This converts assets into legitimate payment for care already provided—reducing the countable estate while recognizing the real work family caregivers do.Spousal Protection Maximization: When one spouse needs nursing home care, the community spouse protections become critical. We work to maximize what the stay-at-home spouse can retain—often significantly more than families realize is possible under Michigan’s spousal impoverishment rules.

Reality Check: What Crisis Planning Can and Can’t Do

Let’s be direct: crisis planning cannot accomplish what five years of proactive planning can.

Medicaid asset protection trusts established years in advance would have removed assets entirely from Medicaid’s reach with no penalty period at all. That opportunity closed when the five-year window closed. Crisis planning works within the look-back period using tools designed for that purpose—effective, but different.

But “some protection” is almost always better than “no protection.” Crisis planning tools exist because families face these situations every day, and the alternative—simply spending everything down to $9,950 before qualifying for Medicaid—is devastating.

We set a higher bar even for crisis planning. When families come to us with urgent situations, we don’t just grab the first strategy that seems applicable. We analyze options, calculate outcomes, and implement the approach that protects the most given the specific circumstances. Crisis doesn’t mean careless.

Quotable Expert Statement: “Crisis planning is harder, more expensive, and produces smaller results than proactive planning. But here’s what I tell families: even imperfect protection beats no protection. We’ve helped families preserve substantial assets even after nursing home admission—not as much as early planning would have protected, but far more than they would have kept without help. The worst outcome is assuming nothing can be done and simply spending down everything.”

Service Area: We provide crisis planning services throughout Macomb County, Oakland County, Wayne County, Southeast Michigan, Central Michigan, and Mid-Michigan.

Facing a care crisis now?

Call (586) 991-7611 or schedule an urgent consultation.

Guardianship & Conservatorship

Guardianship & Conservatorship: When Legal Authority Becomes Necessary

What happens when your parent can no longer make decisions for themselves—and they never signed a power of attorney?

Or when an existing power of attorney isn’t enough because your parent is actively making harmful decisions, or someone is taking advantage of them, or they’re refusing necessary care?

That’s when guardianship and conservatorship become necessary.

Understanding the Difference

Michigan law distinguishes between two types of protective authority:

Guardianship addresses personal care decisions—where someone lives, what medical treatment they receive, who provides their care. A guardian makes decisions about the person.

Conservatorship addresses financial decisions—managing bank accounts, paying bills, handling investments, selling property. A conservator manages the estate.

Sometimes families need one or the other. Sometimes they need both. The court can appoint the same person to serve in both roles, or different people depending on the circumstances.

When Guardianship or Conservatorship Is Needed

These proceedings become necessary when:

No Power of Attorney Exists: If your parent never signed financial and healthcare powers of attorney while they had capacity, and they now lack capacity to sign, court appointment is the only way to gain legal authority.

Existing Documents Are Insufficient: Some situations exceed what a power of attorney can address—especially when the incapacitated person is actively resisting care or making dangerous decisions.

Protection from Exploitation: When someone is taking financial advantage of a vulnerable adult, conservatorship may be necessary to protect remaining assets and recover what’s been taken.

Care Decisions Are Contested: When family members disagree about care for an incapacitated person, guardianship proceedings can resolve the dispute with court oversight.

The Michigan Guardianship Process

Guardianship and conservatorship require court proceedings in the county probate court. The process typically involves:

Petition Filing: Someone (usually a family member) petitions the court for appointment as guardian, conservator, or both.

Investigation: The court appoints a guardian ad litem or visitor to investigate the situation and report on whether protection is needed and who should serve.

Medical Evidence: A physician’s report documenting the incapacity and its nature—physical, cognitive, or both.

Hearing: A court hearing where the judge evaluates the evidence and determines whether appointment is appropriate and who should serve.

Ongoing Oversight: Once appointed, guardians and conservators have reporting obligations to the court, including regular accountings and status reports.

Our Approach to Guardianship Matters

We represent petitioners seeking guardianship or conservatorship over loved ones, helping families navigate court requirements efficiently while meeting all procedural obligations.

We also understand that these proceedings can be emotionally complex. Nobody wants to go to court to take legal authority over a parent. But when it’s necessary—when there’s no other way to protect someone you love—having experienced counsel makes the process smoother and faster.

Note: Guardianship for minor children in family law contexts is handled through our Family Law practice.

Learn about guardianship of minors

Need to establish guardianship or conservatorship?

Special Needs Planning

Special Needs Planning: Providing for Loved Ones Without Destroying Their Benefits

When someone you love has a disability, providing for their future requires planning most families don’t even know exists. A straightforward inheritance—money left with the best intentions—can blow up their entire benefits situation.

Medicaid. Supplemental Security Income. Housing assistance. These programs have strict asset limits. If your disabled loved one receives an inheritance that pushes them over the threshold, they lose benefits they depend on—medical care, income support, housing—until they’ve spent every extra dollar.

We’ve seen it happen. A $50,000 inheritance costs someone their Medicaid, their SSI, their subsidized housing. They spend down the inheritance on care they were getting for free. Then they requalify for benefits—but the inheritance is gone. Everyone loses except whoever got paid during the spend-down.

Proper trust planning prevents exactly this disaster.

How These Trusts Work

A properly drafted trust holds assets for a disabled beneficiary without counting as their resources for benefit eligibility. The trust supplements government benefits—paying for things the benefits don’t cover—without replacing them.

The trust can fund:

• Recreation, entertainment, and vacations
• Electronics, furniture, and personal items
• Education and training beyond what programs provide
• Specialized therapies and treatments not covered by Medicaid
• Vehicle purchases and modifications
• Supplemental care and companionship

Your loved one gets both: the foundation of public benefits plus enhanced quality of life from trust resources. That’s the whole point—and it only works with proper legal structure.

Understanding the Two Types: A Critical Distinction

The terminology matters enormously because the rules—and consequences—are completely different:

Third-Party Supplemental Needs Trusts

These trusts are created and funded by someone other than the disabled beneficiary—typically parents, grandparents, or other family members putting their own assets aside for their loved one’s benefit.

The key advantage: NO Medicaid payback requirement. When the disabled beneficiary eventually dies, remaining trust assets can pass to other family members—siblings, nieces, nephews, whoever you designate. The trust enhanced your loved one’s life without requiring repayment to the state.

Best practice: Create the third-party supplemental needs trust while the grantor (the person setting it up) is alive. This allows the grantor to control all the trust language, name trustees, establish distribution standards, and integrate the trust with their overall estate plan. The grantor’s will or revocable trust then directs that the disabled beneficiary’s share flows into the already-established supplemental needs trust.

Alternative approach: If a grantor doesn’t want to establish the trust during their lifetime, they should at minimum include language in their estate planning documents authorizing their personal representative or successor trustee to create a third-party supplemental needs trust for the disabled beneficiary. This preserves the option to avoid the Medicaid payback requirement—even if the trust gets created after the grantor’s death.

First-Party Special Needs Trusts

These trusts are created with the disabled person’s own assets—typically from an inheritance they received outright (because nobody planned properly), a personal injury settlement, or another windfall that’s now threatening their benefits.

Federal law (42 U.S.C. § 1396p(d)(4)) allows these trusts to preserve benefit eligibility—but with a significant trade-off: when the beneficiary dies, remaining trust assets must first repay Medicaid for benefits provided during their lifetime. This “payback provision” is the cost of preserving benefits when the disabled person already has assets in their own name.

First-party special needs trusts serve an important purpose—they’re often the only option when a disabled person unexpectedly receives assets. But because of the Medicaid payback requirement, they’re the fallback, not the first choice.

Why Planning Matters: The Third-Party Advantage

This is why planning matters so much. If you simply leave assets to a disabled beneficiary in your will—without a supplemental needs trust in place and without language authorizing one to be created—those assets go directly to them, disqualifying them from benefits. At that point, the only option is a first-party special needs trust, which comes with the Medicaid payback requirement you could have avoided entirely.

The difference is substantial:

• With proper planning (third-party supplemental needs trust): Your assets enhance your loved one’s quality of life during their lifetime, preserve their government benefits, and pass to your other family members after the beneficiary’s death—with no Medicaid repayment.
• Without proper planning (first-party special needs trust): Your assets still enhance their quality of life and preserve their benefits during their lifetime—but when they die, Medicaid gets repaid first before any remaining assets pass to family.

Same lifetime benefit to your disabled loved one. Completely different outcome for your family at the end. The planning window exists while the grantor is alive—once they’ve passed without proper provisions, the third-party option closes.

When Disabled Individuals Have Both Types of Trusts

Many disabled individuals end up with both:

• A third-party supplemental needs trust funded by family members who planned properly—no payback required on these assets
• A first-party special needs trust for their own assets (from inheritances received before proper planning, personal injury settlements, work income, or other sources)—payback required on these assets

This is common and manageable. The trusts serve different purposes and have different rules. We help families understand which assets should go where and how to coordinate both trusts effectively for maximum benefit.

Michigan-Specific Considerations

MDHHS Requirements: Michigan’s Medicaid agency has specific expectations for trust language and administration. Trusts drafted for other states—or downloaded from the internet—may not meet Michigan’s requirements. We draft trusts that actually work here.

Michigan ABLE Account Coordination: Michigan’s ABLE (Achieving a Better Life Experience) program lets disabled individuals save up to $100,000 without affecting SSI eligibility, and more without affecting Medicaid. ABLE accounts complement trust planning—they add flexibility without replacing the need for proper trusts.

Trustee Selection: Who manages these trusts matters enormously. One wrong distribution can disqualify the beneficiary from benefits. Trustees must understand both the legal requirements and the beneficiary’s actual needs. We help families think through this decision carefully.

Estate Plan Integration: Every document must work together. We’ve seen families create a beautiful supplemental needs trust—then leave assets directly to the disabled beneficiary in their will anyway, bypassing the trust entirely. The direct inheritance disqualifies them from benefits. Comprehensive planning means every piece aligns.

Quotable Expert Statement: “The most expensive special needs planning mistake is also the most common: families who leave assets directly to a disabled loved one in their will, not understanding the consequences. A $50,000 inheritance can cost that person their Medicaid, housing assistance, and monthly income until every dollar is spent. A third-party supplemental needs trust—established while the grantor is alive or at least authorized in their estate plan—could have protected everything, enhanced their quality of life, and preserved remaining assets for other family members after death with no Medicaid payback. Without that planning, we’re forced into a first-party special needs trust where Medicaid recovers whatever’s left when the beneficiary dies.”

Need to provide for a disabled loved one without jeopardizing their benefits?

Veterans Benefits

Veterans Benefits: Additional Resources for Those Who Served

Veterans and their surviving spouses may qualify for benefits that help cover long-term care costs—resources that exist separately from Medicaid and can sometimes be combined with Medicaid planning for comprehensive protection.

The most significant benefit for elder law purposes is Aid and Attendance—an enhanced VA pension for veterans (or surviving spouses) who need assistance with daily activities. This benefit can provide over $2,000 monthly toward care costs. That’s real money that can meaningfully expand care options.

What You Should Know About Aid and Attendance

To qualify, the veteran or surviving spouse generally must:

• Have served at least 90 days of active duty with at least one day during a wartime period
• Have been discharged under conditions other than dishonorable
• Meet medical requirements showing need for assistance with daily activities
• Meet income and asset requirements (which follow VA rules, not Medicaid rules)

The benefit application process has its own requirements, timelines, and documentation needs—separate from anything involving Medicaid.

VA Asset Protection Trusts

For veterans with assets that might affect VA benefit eligibility, VA asset protection trusts can be an effective planning tool. These irrevocable trusts—structured specifically to comply with VA regulations—can help veterans qualify for Aid and Attendance benefits while preserving assets for their families.

VA asset protection trusts have their own requirements distinct from Medicaid asset protection trusts:

• Different look-back period rules than Medicaid
• Different trust structure requirements
• Different timing considerations for when the trust should be established

For veterans who may need both VA benefits now and Medicaid coverage later, the planning must account for both systems. A trust that works perfectly for VA purposes might create problems for future Medicaid eligibility—or vice versa. Coordination matters.

Coordination with Medicaid Planning

Here’s where it gets complicated: VA benefits and Medicaid operate under completely different rules. Strategies that help with one program can sometimes undermine the other.

For example:

• Certain asset transfers that preserve VA eligibility might trigger Medicaid look-back penalties
• Trust structures optimized for VA benefits might not provide Medicaid protection
• Income from VA benefits can affect Medicaid eligibility calculations

Veterans who need both sets of benefits—Aid and Attendance now, Medicaid later—require coordinated planning that accounts for both systems simultaneously. This isn’t a situation where you plan for one and hope the other works out.

We take ownership of the complete picture. When we develop elder law strategies for veteran clients, we consider how those strategies interact with potential VA benefits—even if we’re not handling the VA claim directly.

Important Note on Our Practice

Daniel Boroja is not currently accredited by the VA to prepare, present, or prosecute VA benefits claims. VA benefits law is a specialized area with its own accreditation requirements.

However, we understand how VA benefits intersect with Medicaid planning and overall elder law strategy. When VA benefits may help your situation, we can:

• Explain how VA benefits fit into your overall elder law planning
• Structure Medicaid planning to avoid conflicts with potential VA benefits
• Implement VA asset protection trusts as part of comprehensive planning
• Coordinate with accredited VA claims attorneys to ensure nothing falls through the cracks

If VA benefits are relevant to your situation, we’ll discuss how they fit into your overall strategy and connect you with qualified VA-accredited professionals for the actual benefits application.

Questions about how VA benefits and elder law planning work together?

What to Expect: Our Elder Law Process

Elder law situations range from proactive planning conversations to urgent crisis response. Our process adapts to your family’s circumstances—but the principles stay consistent: thorough analysis, clear communication, and strategies that actually get implemented.

Step 1: Initial Consultation & Assessment

We start by understanding your family’s complete situation. Who needs protection? What assets are involved? What’s the current health status and care trajectory? What are the family dynamics?

For proactive planning, this conversation is unhurried—we explore options, explain trade-offs, and help you understand what planning can accomplish.

For crisis situations, we move quickly. We need to understand assets, timing, and immediate care needs so we can evaluate what’s realistically achievable.

You’ll leave this meeting understanding your options, realistic outcomes, and recommended next steps.

Timeline: 45-90 minutes (in-person at our Shelby Township headquarters, or by phone or video)

Step 2: Strategy Development & Recommendations

Based on our assessment, we develop specific recommendations for your situation. This isn’t generic advice—it’s a customized strategy accounting for your family’s assets, timeline, care needs, and goals.

We explain the reasoning behind each recommendation. You’ll understand not just what we’re suggesting, but why—and what the alternatives would involve.

Timeline: Typically 1-2 weeks for comprehensive analysis; expedited for crisis situations

Step 3: Document Preparation & Implementation

Elder law strategies require proper documentation—trusts, powers of attorney, applications, transfers. We prepare all necessary documents with the thoroughness these high-stakes matters require.

Every document gets reviewed with you before execution. You’ll understand what you’re signing, why it matters, and how it fits into the overall strategy.

Timeline: Varies by complexity

Step 4: Medicaid Application (When Applicable)

If Medicaid application is part of your strategy, we handle the process—gathering required documentation, preparing the application, responding to requests from the state, and following through until approval.

Medicaid applications are where details matter enormously. Missing documentation or improper responses can delay approval by months. We make sure applications are complete, accurate, and positioned for approval.

Timeline: Applications typically take 3-6 months to process; varies by county and complexity

Step 5: Ongoing Support

Elder law situations evolve. Care needs change. Laws update. Family circumstances shift. We remain available as your family’s situation develops—not just for the initial planning, but for the questions and adjustments that come later.

Frequently Asked Questions: Michigan Elder Law

Ready to Protect Your Family Before Options Disappear?

Watching your parents age is hard enough without worrying about whether their life savings will survive the process.

The families who preserve the most are the families who plan before crisis hits. But even if crisis is already here, you’re not without options. The key is getting expert guidance from counsel who understands Michigan’s complex rules and can develop strategies that actually work for your situation.

We raise the standard for elder law planning because the stakes—your family’s financial security and your parents’ legacy—are too high for shortcuts.

Accountability builds trust. We’ll give you honest assessments, realistic expectations, and clear recommendations—not false promises about what can’t be achieved.

We win together. Your success—assets protected, family secure, options preserved—is our success.

Schedule a consultation with Daniel Boroja and discover what proactive elder law planning can do for your family—because you deserve better than watching everything your parents built disappear.

Learn About Our Other Practice Areas

Office Hours: Monday – Thursday: 9:00 AM – 5:00 PM | Friday: 9:00 AM – 3:00 PM | Saturday & Sunday: By Appointment

Service Area Statement: Boroja, Bernier & Associates serves elder law clients throughout Macomb County (Sterling Heights, Clinton Township, Warren, Shelby Township), Oakland County (Troy, Rochester Hills, Royal Oak, Southfield), Wayne County (Detroit, Livonia, Dearborn, Westland), Southeast Michigan, the Ann Arbor and Washtenaw County area, the Lansing and Central Michigan area (Ingham County, Eaton County), and Mid-Michigan (Genesee County, Lapeer County). Headquarters in Shelby Township with additional offices in Troy, Ann Arbor, and Lansing. Virtual consultations available throughout our service area.