In some states, caring for an aging parent can extend beyond cleaning, meal preparation, and driving them to the doctor. Depending on where you live and what your parents’ financial situation is, you may be legally responsible for paying for your parents’ medical and long-term care if they are unable to pay for it themselves.
This legal obligation, also known as “filial responsibility laws,” has been put in place to ensure parents who are unable to take care of themselves have support from their adult children to provide food, housing, and medical care. To better understand these laws — and whether they apply to you — let’s break down how they work, which states have these laws, and how they could impact you.
What Are Filial Responsibility Laws?
You may be curious, what is filial responsibility? While filial responsibility laws vary from state to state, these laws outline a legal duty for adult children to financially provide for their aging parent when their parent is unable to pay. These laws typically come into play when nursing homes and long-term care facilities seek reimbursement for unpaid bills from their residents. Suppose a nursing home resident cannot pay the bills, and the care is provided in a state that has filial responsibility laws. In that case, the facility can seek compensation from the child of the resident.
Believe it or not, filial responsibility laws have been around for decades. The concept of family responsibility laws began in the Seventeenth Century under England’s Poor Act of 1601, which required that people with the means to do so support indigent family members. Fast forward to today, 26 states in the U.S. (and Puerto Rico) have filial responsibility laws to protect the elderly from becoming despondent. Each state manages the law — and the consequences of failing to comply with the law — differently, making the law complex across state lines. Read on to understand how and why filial laws may apply to you.
When Would Filial Laws Apply to You?
Because each state treats each law differently, filial laws can be complex to understand. Here are some common ways filial laws may apply to you — even if you live in a state where filial laws do not exist.
Your parent receives care in a filial responsibility law state.
One of the most common misconceptions when it comes to filial responsibility laws is that they don’t apply to you if you live in a state that does not have these laws. As it turns out, these kinds of laws come into play where your parent resides and/or receives care. If your aging parent receives care in a state with a filial responsibility law, then you could financially be the responsible party if they do not have the means to pay for the care they received.
Your parent does not qualify for Medicaid.
Medicaid provides financial assistance for medical and long-term care expenses for folks who have limited income and assets. If your parent received care in a state that has filial responsibility laws and did not qualify for Medicaid, then someone is responsible for paying for the nursing home, long-term care, and/or medical costs. Depending on your parents’ financial situation, filial responsibility laws could apply to you in this instance.
Your parent lacks personal financial resources to pay for their own care.
Filial responsibility laws can be enforced when your parent doesn’t have enough money to cover their care costs. If your parent lacks the financial resources to pay for their medical bills or long-term care expenses and they qualify for “indigent status” (which means Social Security benefits and other income sources cannot cover their expenses), then it increases the likelihood that you may be asked by the medical facility, nursing home, or long-term care facility to contribute to their care costs.
Your parent fraudulently transferred assets to you.
In some cases, nursing homes or long-term care facilities may claim that your parents fraudulently transferred their assets to you to avoid paying for their care. If this allegation is substantiated in court, you could be responsible for reimbursement.
It’s important to understand that filial responsibility laws are typically not a concern for lower- and middle-income households if the parent has applied and qualified for Medicaid. However, if care is necessary before your parent is eligible for Medicaid —especially if the court determines that you have sufficient income to cover the cost — then it’s important to understand how filial support laws work and take proactive measures to ensure your parent has the financial means to cover their care costs.
Which States Have Filial Responsibility Laws in Place?
Filial responsibility laws exist in specific states and territories in the United States. Here’s a list of U.S. territories and states with filial laws:
- Alaska
- Arkansas
- California
- Connecticut
- Delaware
- Georgia
- Indiana
- Kentucky
- Louisiana
- Massachusetts
- Mississippi
- Montana
- Nevada
- New Jersey
- North Carolina
- North Dakota
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- West Virginia
- Puerto Rico
Part of what makes filial responsibility laws so complicated is that they’re not uniform across the United States; each state treats its filial responsibility law differently. Here are some examples of how filial responsibility laws vary from state to state:
- The time limit for long-term care in Virginia: In Virginia, you and your siblings are financially responsible for medical bills, including long-term care, up to 60 months of care for your parent.
- General support obligation in Georgia: Georgia’s statute takes a broad approach, leaving room for interpretation based on individual circumstances. It simply states that a financially able child must support an impoverished parent.
- The age limitation in Connecticut: Connecticut’s filial responsibility law applies to parents who are younger than 65 years old. If your parent is over the age of 65, you are not obligated to provide financial support.
- Mental health care only in Arkansas. In Arkansas, filial responsibility laws require adult children to pay only for mental health care services for their parents. This means that if your parent requires mental health care, you may be held financially responsible if insurance does not cover them.
As you can see, the application of filial responsibility laws varies significantly depending on the state, which can create confusion for adult children trying to navigate their obligations. Understanding the specific filial laws in your state is essential to avoid potential legal and financial challenges related to long-term care for your parents.
How Could Filial Laws Affect You?
Experts predict a rise in filial responsibility law enforcement due to the growing cost of long-term care and the increase in our aging population. According to the Genworth Cost of Care Survey, it costs $108,405 a year for a private room in a nursing home. And since more than 1 in 6 Americans are now 65 years or older, caring for the elderly in the United States can add up. Understanding how these laws could affect you can help you proactively plan ahead.
Here are some ways filial responsibility laws could impact you if you have an older parent who resides in a state that enforces filial responsibility laws:
- You may face potential lawsuits for your parent’s care costs. While most facilities will not seek repayment for small co-pays, they may seek reimbursement for substantial bills if your parent is unable to pay. This can result in legal action against you to recover the unpaid bills.
- Asset transfers from your parents to you may be investigated. If there’s suspicion of fraudulent asset transfers to avoid financial responsibility for long-term care expenses, the financial transactions between you and your parents could be carefully inspected. Transparency in financial matters like these is crucial to avoid legal complications.
- You could face serious penalties. In some cases, failing to pay for your parent’s care could lead to civil — or even criminal — penalties.
It’s important to note that filial responsibility laws are not frequently enforced for minor medical expenses. Rather, they become a major concern for medical and long-term care facilities when dealing with high, long-term care costs. To protect yourself and your family, seek out an elder law attorney to understand the specific laws and requirements in your state and the state in which your parent resides. These laws can majorly impact your financial and legal responsibilities, making it essential to plan and prepare for your aging parent’s care.
Can Filial Responsibility Be Avoided?
You may be wondering how to avoid filial responsibility for your parents’ care costs. Unfortunately, filial responsibility laws cannot be avoided. If a long-term care or medical facility seeks payment for your parent’s care, you may be required to pay even if you do not live in a filial state, haven’t spoken to your parent in years, or have little to do with their financial or medical planning.
While you can’t avoid these laws, you can work with your parent to ensure they have the means to care for themselves. Here are some proactive measures you can take to help your parent with their long-term care costs before they turn into a lawsuit against you.
1. Discuss expectations with your parents early and openly.
Start the dialog with your parents about their expectations and your limitations. Understand their financial situation and determine the best path forward to utilize their current assets to pay for long-term care or become qualified for Medicaid.
2. Get involved in your parents’ financial planning.
One of the most effective ways to avoid the burden of filial responsibility is through financial planning. Help them consider whether getting long-term care insurance, selling their life insurance policy for cash in a life settlement, or getting a reverse mortgage could help pay for their care costs later in life. They may not know about the option to sell life insurance for a payout or the ability to get income from their mortgage.
3. Help them qualify for Medicaid.
It’s never too early to learn how to help qualify your parents for Medicaid. There are legal ways to ensure your parents qualify for this government assistance program. Work with an elder care attorney or your parent’s financial advisor to create a Medicaid spend-down strategy that will help your parent qualify for Medicaid assistance.
4. Get family members involved.
If your parents are not financially ready to pay for their long-term or medical care, it may be time to call on family members for help. Create a family care plan that outlines each person’s role and responsibilities to ensure an equitable distribution of caregiving tasks and financial obligations.
5. Seek advice from an elder care attorney.
If your parents do not have the means to pay for their care costs, you may want to seek legal advice from an attorney experienced in elder law. They may help you understand your legal obligations regarding filial responsibility and give you the information necessary to make informed decisions regarding your role in supporting your aging parents.
What You Should Know About Filial Responsibility and Medicaid
If your parent is Medicaid-eligible, then filial responsibility laws don’t apply to you. Medicaid can cover the cost of long-term care for an extended period of time; however, there are income limitations to becoming Medicaid-eligible.
While each state has its own Medicaid requirements, seniors with limited income and assets are generally eligible for Medicaid. Seniors can “spend down” their assets and/or income to become eligible, but there are requirements for how seniors can spend down their financial resources. For example, seniors cannot gift away their assets — doing so could prevent them from receiving Medicaid. You can explore Medicaid Spend Down Calculators to understand how much your parent must spend down to become Medicaid eligible.
The Bottom Line
There’s a moral duty to take care of elders in our society. After all, everyone is headed down the same path of aging. While filial responsibility is an important moral obligation, there are practical steps to take to alleviate the financial (and emotional) burdens associated with paying for costly elder care in the U.S. By planning ahead and seeking assistance before a filial lawsuit ends up in your hands, you can work with your parents to provide support without sacrificing your own well-being and financial security.
If you’re interested in more information about filial responsibility laws and creating a plan that suits your needs, contact Coventry Direct today. Our experts are ready to learn more about your situation and provide information about how a life settlement may provide a windfall at exactly the right time.
