ELDER LAW IN MICHIGAN: LEGISLATIVE UPDATES AND PLANNING STRATEGIES

As Michigan’s population ages, the importance of elder law has grown significantly. Elder law encompasses legal and financial planning to protect the rights, assets, and well-being of older adults. Recently, Michigan has introduced several legislative updates and planning tools to assist seniors and their families in navigating the complexities of aging.

Key Legislative Developments

Uniform Power of Attorney Act (UPOAA)

Effective July 1, 2024, Michigan adopted the Uniform Power of Attorney Act, aligning with over 30 other states. This legislation standardizes the creation and use of Power of Attorney (POA) forms, enhancing their acceptance by financial institutions and healthcare providers. Importantly, the UPOAA imposes civil and criminal penalties for agents who misuse their authority, providing stronger protections against financial exploitation of seniors.

Uniform Securities Act Amendments

In March 2024, amendments to Michigan’s Uniform Securities Act took effect, designating securities brokers, dealers, and investment advisors as mandatory reporters of suspected financial exploitation of vulnerable adults. This change aims to close loopholes that previously allowed bad actors to exploit seniors’ investment accounts without prompt detection.

Guardianship Reform Initiatives

Michigan’s legislature has been working on comprehensive reforms to guardianship and conservatorship laws. House Bills 4909-4912 aim to:

• Establish clear limits on guardianship appointments
• Develop new standards for court-appointed guardian reports
• Protect personal items of sentimental value
• Guarantee the right to an attorney throughout proceedings
• Introduce guidelines for removing individuals from their homes

Additionally, House Bill 5047 proposes the creation of an Office of State Guardian to oversee professional guardians and conservators, ensuring compliance and accountability.

Guardianship Diversion Project

Michigan’s Guardianship Diversion Project, initiated in 2024, aims to find alternatives to guardianship for older adults. By connecting individuals with resources and less restrictive legal options, the project seeks to preserve autonomy and reduce unnecessary court-appointed guardianships. Pilot programs in counties like Bay and Genesee have shown promising results, with significant reductions in guardianship cases.

Protecting Against Elder Abuse

Elder abuse remains a critical concern. Michigan has implemented measures to combat financial exploitation, including:

• Requiring financial institutions to report suspected exploitation
• Allowing delays in transactions when exploitation is suspected
• Providing immunity for good-faith reporting

These steps aim to protect vulnerable adults from financial harm.

Medicaid Planning and Asset Protection

Long-term care costs in Michigan can exceed $100,000 annually, making Medicaid planning essential for many seniors. Proper planning can help protect assets while ensuring eligibility for benefits.

Medicaid Asset Protection Trusts (MAPTs)

MAPTs are irrevocable trusts that allow individuals to transfer assets, removing them from consideration for Medicaid eligibility. These trusts must be established at least five years before applying for Medicaid due to the “look-back” period. While MAPTs can safeguard assets from estate recovery, they require relinquishing control over the assets placed in the trust.

Spend-Down Strategies

To qualify for Medicaid, individuals may need to “spend down” their assets. Michigan allows certain expenditures that do not trigger penalties, such as:

• Home repairs and modifications
• Prepaid funeral arrangements
• Vehicle purchase or repair
• Medical equipment
• Personal care contracts
• Debt repayment

Understanding these allowable expenses can help in planning for Medicaid eligibility.